Indian benchmark equity indices extended their losses into Thursday's trading session, reflecting cautious sentiment among investors. The key indices, the BSE Sensex and the Nifty50, traded in negative territory during the early hours.
Market Performance at a Glance
At 9:17 AM, the Nifty50 was trading at 26,119.40, marking a decline of 21 points or 0.082%. The broader market barometer struggled to hold ground above the 26,100 level. Meanwhile, the BSE Sensex slipped below the 84,950 mark, standing at 84,919.74, down by 41 points or 0.049%.
Market analysts suggest that Indian equity markets are likely to remain range-bound in the near term. This expectation stems from ongoing profit-taking at elevated levels, even as specific stocks continue to see action driven by third-quarter business updates.
Divergent Institutional Activity and Global Cues
Institutional investor behaviour presented a mixed picture. Data from Wednesday showed that Foreign Portfolio Investors (FPIs) were net sellers, offloading equities worth Rs 1,528 crore. In contrast, Domestic Institutional Investors (DIIs) provided crucial support by purchasing shares worth Rs 2,889 crore, cushioning the market's fall.
Global market signals remained uneven. In the United States, the S&P 500 closed lower on Wednesday. The downturn was influenced by losses in financial giants like JPMorgan and Blackstone. However, a contrasting trend emerged in the tech-heavy Nasdaq, which ended higher. This gain was fueled by advances in stocks like Nvidia and Alphabet, highlighting a continued investor rotation towards companies linked to the artificial intelligence sector.
Asian Markets and Bond Sentiment
Asian markets mirrored the cautious mood, extending their decline for a second consecutive session on Thursday. The recent record-setting rally appears to be losing momentum across the region. Meanwhile, bond markets showed more stability. US Treasuries managed to hold on to the gains achieved in the previous session, following the release of mixed economic data from the United States.
The prevailing sentiment indicates a phase of consolidation for Indian equities, where global crosswinds and domestic profit-booking are creating a tug-of-war, leading to a range-bound trajectory for the indices.
