Stock market update: Sensex closes 322 points down on Jan 5
Indian stock markets closed lower on Monday, January 5 after a volatile trading session. Selling pressure in information technology (IT) and oil and gas sector stocks weakened market sentiment. Furthermore, mixed global cues also kept investors cautious. Meanwhile, the rupee closed 9 paise lower against the US dollar at 90.29 (provisional) per dollar.
At the close of trading, the Nifty 50 index fell by 78.25 points, or 0.30 percent, to settle at 26,250.30. According to market analysts, the 26,300 to 26,350 level remains a crucial resistance zone for the Nifty. If the index sustains above this range, a rally towards the 26,500 level is possible in the near future. However, if the Nifty slips below 26,200, a correction towards the 26,050 to 26,000 levels could occur.
The Sensex also ended lower, falling by 322.39 points, or 0.38 percent, to close at 85,439.62. The market had shown strength in early trading, with the Nifty touching a new record high of 26,373.20. However, profit-booking at higher levels put pressure on the market in the later session, and the gains could not be sustained.
Among the Sensex constituents, HDFC Bank, Infosys, HCL Tech, Bajaj Finance, and TCS were the top losers, negatively impacting the benchmark indices. On the other hand, Bharat Electronics, Hindustan Unilever, Tata Steel, UltraTech Cement, and Axis Bank saw buying interest and were among the top gainers of the day.
The broader market trend remained mixed. The Nifty Midcap index closed with a marginal decline of 0.16 percent, while the Nifty Smallcap index registered a weakness of 0.53 percent.
At the sectoral level, the IT and Oil & Gas sectors witnessed the most pressure. The Nifty IT and Nifty Oil & Gas indices fell by nearly 1 percent. In contrast, the Realty sector performed well, with the Nifty Realty index gaining over 2 percent. FMCG and Consumer Durables stocks also showed strength, indicating continued buying in defensive and consumption-based sectors.
Going forward, the third-quarter (Q3) results will play a crucial role in determining the market direction. Market experts believe that investor sentiment is likely to remain cautiously positive in the near term.
