Indian benchmark indices traded in the red in early trade on Tuesday, weighed down by negative global cues, a tech sell-off on Wall Street, and continued selling by foreign portfolio investors (FPIs).
Around 9.30 am, the Sensex was down 115 points, or 0.14 per cent, at 84,579, while the Nifty slipped 30 points, or 0.12 per cent, to 25,911.
Broader market indices moved in line with the benchmarks, with the Nifty Midcap 100 declining 0.03 per cent and the Nifty Smallcap 100 losing 0.08 per cent.
Among sectoral indices, the Nifty PSU Bank index was the top loser, down 0.18 per cent, followed by the Nifty Realty index, which fell 0.13 per cent.
Immediate support for the Nifty is placed in the 25,850–25,900 zone, while 26,150–26,200 remains a crucial resistance band, analysts said.
They added that the year-end trend, though weak, does not indicate a directional shift in the market. Since the advance-decline ratio favoured declines, the Nifty fell 100 points on Monday despite thin volumes.
A clear directional change is expected early in the new year when large institutions return to active participation. Market watchers advised investors to wait for fresh triggers and clearer directional cues.
Auto sales numbers, expected in the next two days, are likely to provide insights into the sustainability of the consumption boom and economic growth, they added.
Asia-Pacific markets mostly declined during the morning session, as investor sentiment remained cautious following the technology sell-off on Wall Street.
In Asian markets, China’s Shanghai index fell 0.1 per cent, while Shenzhen edged up 0.23 per cent. Japan’s Nikkei slipped 0.11 per cent, Hong Kong’s Hang Seng index gained 0.47 per cent, and South Korea’s Kospi declined 0.01 per cent.
US markets ended lower on Monday, with the Nasdaq down 0.5 per cent, the S&P 500 easing 0.35 per cent, and the Dow Jones Industrial Average declining 0.51 per cent.
On December 29, foreign institutional investors (FIIs) sold equities worth Rs 2,760 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 2,644 crore.
–IANS
