Source : INDIA TODAY NEWS
Benchmark indices opened marginally lower on Tuesday despite a stronger-than-expected 7.8% GDP growth print for the first quarter, as renewed tensions between the US and Iran and elevated crude oil prices kept investors cautious. Weakness in pharma and healthcare stocks weighed on the market, while IT stocks provided some support.
The BSE Sensex was down 25.93 points, or 0.03%, at 76,931.34 as of 9:29 am. The index opened at 76,994.11 and touched an early high of 77,083.49 and a low of 76,835.79.
The Nifty 50 was down 17.20 points, or 0.07%, at 24,063.20. It opened at 24,077.55 and moved between 24,082.60 and 24,027.80.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said the 7.8% Q1 GDP growth was reassuring and indicated that India remained on track to achieve 7% growth in FY27. “Services and secondary sectors growing at 10% and 8.5% respectively reflect a robust economy which can deliver decent earnings growth in FY27,” he said.
However, Vijayakumar cautioned that global headwinds could continue to weigh on equities despite strong domestic fundamentals. “In the near-term the global headwinds from elevated crude and excessive U.S. bond yields might impact the market negatively,” he said, pointing to the US 10-year bond yield at 4.77% and the 30-year yield at 5.24%.
He added that foreign investor selling was another concern, with FIIs selling equity worth Rs 13,025 crore in the cash market over the previous two sessions. “Flight of capital to safe US bonds is inevitable in this context,” Vijayakumar said.
He expects the Nifty to remain range-bound despite the competing domestic and global factors. “In brief, while high U.S. bond yields and elevated crude, more importantly the former, will negatively impact the market, the fundamentals will support the market. In other words, the Nifty range of 23000-25000 will hold in the near-term,” he said.
IT STOCKS PROVIDE SUPPORT
Among Sensex stocks, IT shares were among the strongest performers. ITC was the top gainer, rising 3%, followed by HCLTech, which added 2.43%, and Infosys, which gained 1.43%. Bharti Airtel advanced 1.42%, Kotak Mahindra Bank rose 0.92% and Reliance Industries added 0.68%.
Tech Mahindra, Asian Paints, Adani Ports and M&M were also in the green.
On the other hand, Indigo was the biggest loser, falling 1.89%. Bajaj Finserv declined 1.74%, SBI lost 1.31%, Axis Bank fell 1.21% and Sun Pharma declined 1.02%. Bajaj Finance, HDFC Bank, Eternal, Power Grid and Maruti were also trading lower.
The broader market was weaker, with Nifty 100 down 0.21%, Nifty 200 losing 0.36% and Nifty 500 declining 0.33%.
Mid-cap stocks saw sharper pressure, with Nifty Midcap 50 falling 1.05% and Nifty Midcap 100 declining 0.95%. Nifty Smallcap 100 was down 0.26%. India VIX, however, rose 0.33%.
PHARMA, HEALTHCARE LEAD SECTORAL LOSSES
Pharma and healthcare stocks came under pressure at the open. Nifty Healthcare Index fell 1.59%, while Nifty Pharma declined 1.42%.
Nifty Private Bank fell 0.97%, Nifty Financial Services 25/50 declined 0.90%, Nifty Financial Services ex-Bank lost 1.29% and Nifty MidSmall Financial Services fell 1.39%.
Nifty Realty declined 1.38%, Nifty IT & Telecom was flat, while Nifty FMCG gained 0.75%. Nifty Media added 0.65%, Nifty Metal rose 0.50% and Nifty Auto gained 0.27%.
Nifty PSU Bank declined 0.65%, Nifty Consumer Durables fell 0.64%, Nifty Chemicals lost 0.39% and Nifty Oil & Gas was marginally higher.
Among other sectoral indices, Nifty MidSmall Healthcare declined 0.88%, while Nifty MidSmall IT & Telecom was unchanged.
CRUDE REMAINS A KEY CONCERN
Crude oil prices remained elevated amid continuing geopolitical tensions. Brent crude was trading at $91.21 a barrel, up 0.8%, while WTI crude rose 1.08% to $86.69.
The rise in crude comes as tensions between the US and Iran remain a key risk for global markets. Vijayakumar said elevated crude, together with high US bond yields, could limit the upside for Indian equities even as strong domestic growth and fundamentals provide support.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
– Ends
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SOURCE :- TIMES OF INDIA
