After bulls lit up D-Street in the previous session, Indian equities ended the first trading week of the calendar year on a weak note. Finally, the Sensex ended lower by 0.9 percent or 720.6 points at 79,223.11, while the Nify50 index closed down by 0.76 percent at 183.9 percent at 24,004.75. The pullback came after selling in select portfolios including IT, pharma and private banking stocks.
However, the broader markets after a good start ended the day on a negative note, but still outperformed the headline indexes.
Prashanth Tapse, Senior VP (Research), Mehta Equities in today’s market said, “Despite a brief recovery in the short term of the last two sessions, the markets have lost momentum as there is still a lot of optimism due to slow growth, high domestic prices, foreign fund exits and uncertainty about America’s trade policies after Trump resumes as president.”
Therefore, markets may see periods of correction and investors will continue to be cautious while keeping a close eye on global developments, he added.
Top gainers in the Nify portfolio included stocks like ONGC, Tata Motors, Titan Company, HUL and SBI Life Insurance, while the rest of the basket were Wipro, HDFC Bank, Tech Mahindra, Adani Ports and ICICI Bank.
Even though in the first two trading sessions of CY 2025, FII sales have decreased with net sales to Rs 275.96 crore, there is no guaranteed scenario that FIIs will continue to buy on D-Street.
With the dollar index at 109.25 and the US 10-year yield at 4.56% the massive buildup does not allow for continued FII buying, noted Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services:
World markets
Meanwhile, European markets traded in the red for a holiday-shortened week, with Germany’s DAX index down 0.7 percent.
