Benchmark stock market indices started the day lower on Friday following a holiday break, with FMCG and auto stocks leading the decline. The S&P BSE Sensex dropped 208.31 points to 80,775.00, while the NSE Nifty50 fell 75 points to 24,760.80 by 9:30 am.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, the market’s positive momentum, especially in Bank Nifty, could be sustained due to the central bank’s efforts to boost credit growth. However, he noted concerns about continued selling by foreign institutional investors (FIIs), which may intensify due to market conditions favoring aggressive selling.
In early trading, the top gainers on the Sensex included Tata Motors (+5.54%), Kotak Mahindra Bank (+3.45%), Trent (+3.31%), Sun Pharma (+2.58%), and Axis Bank (+2.43%). On the flip side, Bajaj Finance (-1.10%), State Bank of India (-0.97%), UltraTech Cement (-0.86%), Tata Steel (-0.71%), and Asian Paints (-0.62%) were among the top losers.
Sector-wise, Nifty Metal led the gainers at 0.76%, followed by Nifty Pharma (0.28%), Nifty PSU Bank (0.28%), Nifty Private Bank (0.25%), Nifty Consumer Durables (0.22%), Nifty Realty (0.06%), and Nifty Healthcare (0.03%). Conversely, Nifty Media experienced the most significant decline at 0.71%, trailed by Nifty Financial Services (-0.40%), Nifty Auto (-0.38%), Nifty FMCG (-0.22%), Nifty Oil & Gas (-0.13%), and Nifty IT (-0.10%).
Dr. VK Vijayakumar suggested that aggressive buying by domestic institutional investors (DIIs) could offer support, particularly in large-cap auto stocks with solid fundamentals. He highlighted that central bank measures to enhance credit flow would benefit banks, particularly stronger ones poised to benefit from increased credit growth and reduced deposit insurance premiums. Large-cap banks at fair valuations were seen as attractive for medium to long-term investments, while auto stocks were expected to remain resilient on the back of positive industry developments.
The article concludes with a disclaimer advising readers to seek advice from a qualified broker or financial advisor before making investment decisions.