India’s domestic benchmark indices closed lower on Thursday as investors adopted a cautious stance ahead of Q3 FY25 earnings reports. Broad-based selling was observed across IT, PSU banks, financial services, pharma, and auto sectors, while the FMCG sector emerged as a rare gainer.
Market Performance
- Sensex: Closed at 77,620.21, down 528.28 points (-0.68%).
- Nifty: Settled at 23,526.50, losing 162.45 points (-0.69%).
- Nifty Bank: Ended at 49,503.50, declining 331.55 points (-0.67%).
- Nifty Midcap 100: Dropped 524.70 points (-0.93%) to 55,745.90.
- Nifty Smallcap 100: Fell 247.30 points (-1.35%) to 18,118.35.
Market Sentiment and Sectoral Impact
Analysts attributed the market’s downturn to cautious investor sentiment amid ongoing US bond selling and weakness in Asian markets.
- Gainers: FMCG stocks outperformed, with companies like Nestle India, Hindustan Unilever, Asian Paints, and ITC leading gains.
- Losers: Major losses were recorded in Zomato, Tata Steel, NTPC, HDFC Bank, TCS, SBI, Reliance, Infosys, and Sun Pharma, among others.
On the Bombay Stock Exchange (BSE):
- Advances: 1,210 shares
- Declines: 2,750 shares
- Unchanged: 107 shares
Institutional Activity
Foreign institutional investors (FIIs) sold equities worth Rs 3,362.18 crore, while domestic institutional investors (DIIs) purchased equities amounting to Rs 2,716.28 crore on January 8.
Technical Analysis
The Nifty index closed marginally above its critical support level of 23,500, forming a bearish candlestick below the 200-day exponential moving average (EMA).
- Support Level: 23,500
- Resistance Level: 23,800
Vatsal Bhuva, Analyst at LKP Securities, stated:
“A breach below 23,500 would signal a sell-on-rise trend, potentially leading to further downside. Holding above this level could bring consolidation in the near term.”
Outlook
Market participants are expected to remain vigilant as Q3 earnings season unfolds, with attention focused on global cues and domestic macroeconomic trends.
