Markets Dip as IT Shares Decline; Broader Indices Outperform
Markets dipped today as IT shares witnessed profit booking, with Nifty below 24,700. Sensex dropped 409 points. Alphageo surged 20% on an ONGC contract. Broader indices outperformed, while inflation and PMI data provided mixed signals for the economy.
The Indian equity markets witnessed a decline in mid-afternoon trade today, led by profit booking in IT shares. Broader indices, however, managed to outperform the frontline indices.
Key Market Highlights
At 14:28 IST, the S&P BSE Sensex fell by 409.02 points or 0.50%, settling at 81,699.69, while the Nifty 50 index dropped 113.15 points or 0.46%, trading at 24,655.15. Despite the losses in key indices, the broader market showed resilience, with the S&P BSE Mid-Cap index up 0.60% and the S&P BSE Small-Cap index rising 0.45%.
IT Shares Under Pressure
After a five-day rally, the Nifty IT index slipped 0.84%, reflecting profit booking across major IT stocks. Key decliners included:
- Tata Consultancy Services: Down 1.38%
- Tech Mahindra: Down 1.01%
- Infosys: Down 0.85%
- HCL Technologies: Down 0.75%
- Wipro: Down 0.52%
The index had rallied 2.86% over the last five trading sessions before today’s decline.
Positive Breadth in Broader Markets
Market breadth remained positive, with 2,306 shares rising against 1,786 shares falling on the BSE.
Economy: Mixed Signals
The Wholesale Price Index (WPI) inflation stood at 1.89% in November 2024, primarily driven by higher prices of food articles, textiles, and machinery. However, the WPI Food Index inflation saw a decline from 11.59% in October to 8.92% in November 2024, signaling easing food price pressures.
The HSBC Flash India Composite Output Index rose to 60.7 in December, reflecting robust growth in manufacturing and services sectors. Meanwhile, India’s foreign exchange reserves dropped by $3.235 billion, reaching a five-month low of $654.857 billion.
Buzzing Stocks
- Alphageo (India): The stock hit an upper circuit of 20% after securing contracts worth ₹118.63 crore from ONGC for seismic data acquisition.
- Jindal Worldwide: Shares surged 9% following a 35.92% jump in consolidated net profit and a 45.68% increase in revenue for Q2 FY25 compared to Q2 FY24.
Numbers to Watch
- 10-Year Bond Yield: Rose to 6.850%, up from the previous close of 6.730%.
- Rupee vs Dollar: The rupee weakened slightly, trading at 84.8375 compared to the previous close of 84.8050.
- Gold Futures: MCX Gold for February 5 settlement gained 0.06%, trading at ₹77,780.
- Crude Oil: Brent crude for February 2024 fell 0.58% to $74.06 per barrel.
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