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The Indian stock markets experienced a downturn on Wednesday, with the benchmark Sensex and Nifty indices falling due to selling pressure in IT stocks. The Sensex closed 0.14% lower at 84,798.37, while the Nifty dipped 0.2% to 25,889.05. This decline was reflected in the market breadth, with over 2,300 stocks declining compared to 1,500 advancing.
IT stocks were the primary drivers of the market's downward trajectory. LTIM saw a significant drop of 3.74%, followed by Tech Mahindra (-2.68%) and Wipro (-1.52%). Other notable losers included Tata Consumer Products (-2.10%) and Tata Motors (-1.67%).
In contrast to the IT sector's performance, Power Grid Corporation emerged as the top gainer, surging 2.84%. Axis Bank and NTPC also saw positive gains of 1.28% and 1.14%, respectively. Grasim Industries and Divi's Laboratories rounded out the top five gainers, up 0.89% and 0.80%, respectively.
Sectoral indices presented a mixed picture. The Nifty Bank index rose 0.14%, while the Nifty Financial Services index gained 0.28%. However, the Nifty Next 50 and Nifty Midcap Select indices closed in negative territory.
Gold prices continued their upward trend, outperforming other asset classes in 2024. Nish Bhatt, Founder & CEO of Millwood Kane International, attributed the rally to expectations of rate cuts by the US Federal Reserve and geopolitical tensions. Bhatt emphasized the impact of escalating tensions between Lebanon and Israel and higher buying by ETFs, which he believes will sustain demand for gold in the short to medium term.
As the trading day progressed, investors remained cautious, closely monitoring global cues and domestic economic indicators for further direction in the market.
Source: Markets edge lower as IT stocks drag, gold continues rally