Benchmark stock market indices started the day with little change on Tuesday as investors awaited a slew of second-quarter earnings announcements. The S&P BSE Sensex dipped 123.01 points to 83,855.48, while the NSE Nifty50 slipped 53.50 points to 25,710.05 by 9:33 am.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, noted that foreign institutional investors (FIIs) selling off shares had put pressure on the market’s upward momentum. Over the past four days, FIIs had offloaded equity worth Rs 14,269 crores, signaling a likelihood of continued selling during market rallies. The relatively high valuations in India coupled with subdued earnings growth were deterring FIIs, who favored markets offering better earnings growth at more attractive valuations. However, Vijayakumar viewed this as a temporary hurdle.
Bharti Airtel and Titan led the gainers on the BSE Sensex, with rises of 2.54% and 0.83%, respectively. On the downside, Power Grid Corporation saw a significant drop of 2.48%, followed by Eternal at 1.38%. The initial market movement indicated cautious sentiment, with notable selling pressure observed in various major stocks.
Following the opening bell, the Nifty Midcap 100 index edged up by 0.06%, while the Nifty Smallcap 100 declined by 0.16%. India VIX, a measure of market volatility, increased by 1.69%.
Across sectoral indices, Nifty Media, Nifty Realty, and Nifty Consumer Durables showed positive movements. On the other hand, Nifty Auto, Nifty IT, and Nifty FMCG faced declines. Vijayakumar highlighted the positive outlook for the medium term, citing robust GDP growth and promising sales figures in the auto sector. While banking earnings growth was modest and IT earnings growth lagged, he anticipated a stronger earnings growth of around 15% in FY27.
Vijayakumar also pointed out the resilience of the PSU banking sector and its attractive valuation in a market characterized by high valuations. He foresaw a bright future for this segment, particularly in light of the upcoming PSU bank mergers.
The expert opinions expressed in this article are personal views and do not necessarily represent those of the India Today Group. It is advisable to seek advice from a qualified financial advisor before making any investment decisions.