Indian stocks fell modestly on Thursday, with the Sensex down about 0.3% as worries over U.S. tariffs and continued foreign outflows outweighed gains in metals and banks.
Market Overview
The benchmark BSE Sensex closed at 83,382.71, losing 245 points, while the NSE Nifty 50 ended at 25,665.60, down 66.7 points. This marks the seventh decline in eight trading sessions, showing that investor sentiment remains fragile despite some sectoral strengths.
What Analysts Said
Research head Vinod Nair noted that investors are still cautious about the India‑U.S. trade talks. Foreign Institutional Investors (FIIs) remain risk‑averse, but the restart of negotiations this week has sparked a bit of optimism.
He added that metal stocks led the day as prices rose on expectations of U.S. rate cuts, softer inflation data, and safe‑haven demand amid global tensions. Mid‑ and small‑cap stocks saw selective buying, while the market awaited the U.S. December PPI and major bank earnings.
US Market Snapshot
Wall Street recovered on Thursday after a two‑day dip, driven by a strong rally in chip makers following TSMC’s impressive earnings. Nvidia rose 2%, Broadcom 1.4% and Micron 1.9%. Tool makers Applied Materials, Lam Research and KLA each jumped more than 7%.
TSMC, a key supplier of AI chips, forecast solid annual growth and announced plans for more U.S. manufacturing capacity, sending its U.S.-listed shares up 5.4%. The broader technology sector gained 1.3%, and banks added 0.9%.
European Market Note
European bourses have been pushing record highs despite a generally cautious tone ahead of earnings season. The pan‑European STOXX 600 rose 0.4%, with technology stocks up 1.8% and financial services up 1.3%.
Technical Outlook for Nifty
Technical analyst Rupak De observed that the Nifty stayed below its 21‑day exponential moving average (EMA), indicating a weak trend. The 21 EMA is still crossing below the 50 EMA, reinforcing bearish sentiment.
Key levels to watch: support near 25,600 and resistance around 25,835. A break below support could trigger a deeper correction.
Most Active Stocks
- By turnover (value): HDFC Bank, Vedanta, Hindustan Copper, ICICI Bank, Hindustan Zinc, Union Bank India, Jupiter Wagons.
- By volume: Vodafone Idea, MMTC, Union Bank India, Bank of Maharashtra, YES Bank, Ola Electric Mobility, Tata Steel.
Stocks Showing Buying Interest
MMTC, Jupiter Wagons, MRPL, Union Bank India, Chennai Petro, Hindustan Copper and Vedanta attracted notable buying pressure.
Stocks at 52‑Week Highs and Lows
More than 80 stocks hit 52‑week highs, including SBI and Tata Steel, while 222 stocks fell to 52‑week lows.
Bottom Line for Retail Investors
The market’s modest decline reflects lingering concerns over trade tensions and foreign capital flows. Metal stocks and select mid‑caps managed to hold up, but the overall bias remains bearish. Keep an eye on the Nifty’s key support at 25,600 and watch for earnings updates that could shift sentiment.
Disclaimer
These observations are for informational purposes only and should not be taken as investment advice. Always do your own research and consider your risk tolerance before making any trades.