Benchmark stock market indices opened sharply lower on Thursday, weighed down by weakness in banking and IT stocks amid continued foreign investor selling and concerns over rising geopolitical tensions in West Asia.
The BSE Sensex fell 422.11 points, or 0.54%, to 77,422.41 in early trade. The NSE Nifty50 slipped 129 points to 24,197.65, falling below the 24,200 mark.
Banking stocks were among the top laggards in morning trade, continuing the recent pressure on heavyweight financial counters. IT shares also remained weak, contributing to the decline in benchmark indices.
Market sentiment remained cautious as investors tracked developments in West Asia, where volatility in crude oil prices has added uncertainty to global markets.
Dr VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said the ongoing “de-escalation-escalation drama” in the region continues to impact crude oil prices and investor sentiment.
He noted that while some global markets have rallied strongly this year, India has underperformed due to concerns linked to the energy crisis and sustained foreign portfolio investor (FPI) selling.
“An important trend in India is the outperformance of the broader market. The Nifty Midcap index is now at a record high despite high valuations,” Vijayakumar said.
According to him, benchmark indices are being weighed down by continuous selling in heavyweight banking and IT stocks.
“The dichotomy in market trend, broader market outperformance versus Nifty underperformance, will continue so long as FPIs remain net sellers,” he added.
Despite the weakness in frontline indices, broader market stocks continued to show relative resilience in early trade.