Benchmark stock market indices started the day on a downward trend, primarily influenced by IT stocks due to disappointing Q4 results from HCL Technologies. The S&P BSE Sensex dropped 580.11 points to 78,693.22, and the NSE Nifty50 fell by 142.60 points to 24,434.00 by 9:42 am.
Dr. VK Vijayakumar, the Chief Investment Strategist at Geojit Investments Limited, highlighted the current market volatility, emphasizing the importance of maintaining investment positions. He noted the Nifty’s 10% rise this month and the BSE 500’s impressive 15% returns, attributing market surprises to factors like short covering.
In the initial trading session, Hindustan Unilever Ltd led the gainers on the Sensex with a 1.41% increase, followed by NTPC Ltd up by 1.02%. Tata Steel Ltd and UltraTech Cement Ltd also showed modest gains at 0.35% and 0.21%, respectively.
HCL Technologies Ltd faced the most significant decline, dropping 8.68%, while Tech Mahindra Ltd, Infosys Ltd, ICICI Bank Ltd, and Tata Consultancy Services Ltd also experienced losses in early trading. Vijayakumar expressed concerns over ongoing uncertainties, particularly regarding the US-Iran ceasefire situation, impacting market sentiments.
He highlighted the positive performance of financial and capital market-related stocks, while cautioning about potential corrections in the IT sector following HCL Tech’s weak outlook. Additionally, he advised monitoring the upcoming results of automobile and auto ancillary companies expected to perform well.
(Note: The opinions expressed in this article belong to the mentioned experts/brokerages and do not represent the views of the India Today Group. It is recommended to seek advice from a qualified financial advisor before making investment decisions.)