The BSE Sensex traded over 400 points lower to the day’s low of 83,817, while the Nifty 50 was down over 100 points to slip below the 25,850 mark.
On the 30-stock Sensex, Infosys, TCS, Tech Mahindra, HCL Tech, Eternal, and Titan Company were the top drags, falling in the range of 2-4%. Gains in ICICI Bank, NTPC, Axis Bank, Power Grid, and Tata Steel were marginal, rising up to a percent.
Expert Views
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the latest U.S. jobs data showing the addition of 1,30,000 jobs and a decline in unemployment to 4.3% suggests that the Federal Reserve may refrain from rate cuts in the near term. In India as well, the rate-cutting cycle appears largely over, given steady growth and inflation expected to gradually move back toward the RBI’s long-term target by the end of FY27.
He added that market support is likely to come primarily from earnings growth, with sectors such as automobiles, jewellery, hotels, select capital goods, telecom and financials showing strong performance and potential to sustain momentum. However, tech stocks, already under pressure following the Anthropic-led disruption, may take longer to recover. The recent sharp fall in ADRs of leading Indian IT companies in the U.S. signals continued weakness in the sector, and a rotation of funds from IT to better-performing segments could support stocks in stronger earnings-driven sectors.
FII/DII Tracker
Foreign portfolio investors or FPIs net bought shares worth Rs 944 crore on Wednesday, February 11. DIIs, meanwhile, were net sellers of Rs 125.36 crore, provisional data from the National Stock Exchange showed.
Global Markets
U.S. markets ended marginally lower after a choppy session. The Dow Jones Industrial Average slipped more than 66 points, or 0.1%, while the Nasdaq Composite fell about 0.2% and the S&P 500 closed just below the flatline. Stocks had initially rallied following a strong jobs report but later pared gains.
In Asia, Japan’s Nikkei 225 briefly crossed the 58,000 mark for the first time ever, extending its post-election rally on optimism around domestic politics and economic reforms, before trimming gains to trade marginally higher at 57,663. The broader Topix index rose 0.68%. Other Asian markets showed resilience despite weaker cues from Wall Street. South Korea’s Kospi surged as much as 2.1% to a record high of 5,466.9 before settling about 1.82% higher, while the Kosdaq remained largely flat. Singapore’s benchmark index crossed the 5,000 level for the first time.
Australia’s S&P/ASX 200 gained 0.42% in early trade. Meanwhile, Hong Kong’s Hang Seng Index slipped 0.23%, whereas mainland China’s CSI 300 edged up 0.12%.
Crude Impact
Oil prices edged higher on Thursday morning as investors grew cautious over escalating tensions between the U.S. and Iran, raising concerns about potential supply disruptions.
Brent crude futures rose 34 cents, or 0.49%, to $69.74 per barrel at 0126 GMT, while U.S. West Texas Intermediate (WTI) crude gained 37 cents, or 0.57%, to $65.00 per barrel.
Rupee vs Dollar
The Indian rupee opened 0.27% higher at 90.4550 per U.S. dollar on Thursday, compared with its previous close of 90.70.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)