The Indian equity benchmarks experienced a downward trend on Wednesday, with the Sensex falling as much as 369 points and the Nifty 50 index touching an intraday low of 21,137. This decline was largely attributed to losses in Axis Bank, whose December quarter earnings failed to impress investors. However, the market managed to recover most of its losses on the back of buying interest in IT stocks. As of 9:26 am, the Sensex was down 179 points at 70,191, while the Nifty 50 index declined 40 points to 21,187.
The Asian markets were also trading mostly lower, with Japan’s Nikkei down 0.73 per cent and South Korea’s KOSPI falling 0.33 per cent. However, Hong Kong’s Hang Seng rose 1.26 per cent, indicating mixed cues from the region.
Overnight, the S&P 500 posted a second straight record high close on Monday as tech stocks added to recent gains. This has left investors awaiting upcoming corporate reports for clues on this year’s profit outlook.
In terms of sector performance in the Indian market, the Nifty Auto index led the losses with a 0.7 per cent fall. Additionally, the Nifty Bank, Financial Services, Private Bank, and Realty indices also saw declines between 0.3-0.6 per cent. On the other hand, the Nifty Media index saw a 2 per cent rise, driven by a 7 per cent gain in Zee Entertainment.
It is worth noting that mid- and small-cap shares witnessed buying interest, with the Nifty Midcap 100 index rising 0.39 per cent and Nifty Smallcap 100 index advancing 0.7 per cent.
In individual stock performance, Axis Bank was the top Nifty loser, falling 4.2 per cent, while companies like Hero MotoCorp, Asian Paints, Apollo Hospitals, and Mahindra & Mahindra also saw declines between 0.35-2.5 per cent.
On the flipside, companies like Hindalco, Tata Steel, IndusInd Bank, and Coal India were among the gainers. The overall market breadth was positive, with 2,045 shares advancing while 921 were declining on the BSE.
Opinion: Despite the initial decline, the market’s ability to recover most of its losses indicates resilience and potential for growth in the near future. The buying interest in IT stocks and the positive market breadth also suggest a sense of confidence among investors.