Indian markets open lower as IT stocks drag benchmarks

Indian equity benchmarks opened in negative territory on Thursday morning, weighed down by a sharp sell-off in information technology stocks amid lingering global uncertainty over interest rates.

At around 9.25am, the Sensex was down 397 points, or 0.47 per cent, at 83,836, while the Nifty 50 slipped 111 points, or 0.43 per cent, to 25,842.

Broader markets fared worse than the headline indices. The Nifty Midcap 100 declined 0.76 per cent and the Nifty Smallcap 100 fell 0.88 per cent in early deals, reflecting wider selling pressure.

Most sectoral indices traded lower, with the exception of FMCG, private banking, and oil and gas stocks, which managed modest gains. The IT index emerged as the biggest laggard, plunging 3.58 per cent. Realty and media shares also saw notable losses, dropping 1.11 per cent and 1.04 per cent respectively.

Market analysts identified immediate support for the Nifty in the 25,800–25,850 range, with resistance seen between 26,050 and 26,100.

Investor sentiment has been influenced by recent US economic data showing stronger-than-expected labour market performance. The addition of 130,000 jobs last month and a fall in unemployment to 4.3 per cent have dampened expectations of imminent interest rate cuts by the US Federal Reserve.

Domestically, some market observers believe India’s rate-cutting cycle may have concluded, citing steady economic growth and projections that inflation could return to the Reserve Bank of India’s long-term target by the end of the 2026–27 financial year.

Across Asia, markets delivered mixed performances. China’s Shanghai Composite edged up 0.12 per cent, while the Shenzhen index gained 0.81 per cent. Japan’s Nikkei rose 0.1 per cent, whereas Hong Kong’s Hang Seng declined 0.97 per cent. South Korea’s Kospi outperformed with a 2.74 per cent jump.

Overnight on Wall Street, US markets ended largely weaker. The Nasdaq slipped 0.16 per cent, the Dow Jones Industrial Average fell 0.13 per cent, and the S&P 500 closed broadly flat.

In terms of fund flows, foreign institutional investors were net buyers of Indian equities worth Rs 944 crore on 11 February, while domestic institutional investors sold shares amounting to Rs 125 crore.

Indian markets had corrected in January amid global volatility and sustained foreign investor outflows. However, analysts maintain that the medium-term outlook remains constructive despite near-term headwinds.

With IANS inputs