Stock market indices opened lower on Thursday, with both the S&P BSE Sensex and NSE Nifty falling as persistent foreign institutional selling and underwhelming second-quarter earnings dampened sentiment. Losses in Asian and U.S. markets also exerted downward pressure on Dalal Street, particularly impacting IT stocks.
At 10:07 a.m., the Sensex had dropped 199.13 points to 79,743.05, while the Nifty50 was down by 126 points, trading at 24,340.85. Broader market indices saw similar declines, and volatility increased as the session progressed.
Among the Nifty50’s top performers were Cipla, L&T, ONGC, Hero MotoCorp, and IndusInd Bank, while major IT players Tech Mahindra, HCLTech, TCS, Infosys, and Wipro led the losses.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that this Diwali, market “fireworks” may be absent. He highlighted that India’s markets have underperformed in October, with the Nifty down by 5.7%, while markets in the U.S. and Japan have posted gains, and China and Hong Kong have surged.
Vijayakumar pointed to high valuations, continued foreign investor selling, and concerns over slowing earnings growth as key drivers of India’s underperformance. He noted that while short-term market pullbacks may occur, a decisive trend reversal seems unlikely in the immediate future.
A prominent trend is the strong focus on individual stocks rather than the broader market, Vijayakumar observed. Stocks with positive earnings surprises are seeing substantial gains, while those with disappointing results face steep corrections. “This emphasis on rewarding strong results and penalizing weak ones reflects the market’s current stock-specific orientation,” he explained.
Vijayakumar advised investors to focus on resilient stocks and sectors with solid earnings and positive guidance, as these are likely to maintain stability amid market fluctuations.
