Sensex, Nifty open flat as IT Stocks slide; Infosys leads early losses
Indian stock markets opened on a cautious note on Wednesday. Benchmark indices traded almost flat in early deals. Gains in metal and banking shares balanced losses in information technology stocks.
First, trading began with mixed cues. The S&P BSE Sensex on the Bombay Stock Exchange rose by 19.33 points to 83,470.29. At the same time, the Nifty50 on the National Stock Exchange of India added 12.50 points to reach 25,737.90 by 9:41 am.
However, IT stocks soon dragged the market lower. Heavy selling pressure emerged in major technology firms. As a result, early gains remained limited.
Meanwhile, market expert V. K. Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, shared his views on the trend. He said strong third-quarter earnings supported market resilience. He added that steady growth signals kept investor confidence intact.
However, he also warned about continued weakness in the IT sector. According to him, uncertainty around global demand and spending remains high. Therefore, large institutional investors stay cautious. They avoid heavy investments in technology stocks unless valuations turn attractive.
As trading progressed, select stocks showed strong buying interest. After one hour, Kalyan Jewellers India led the Sensex gainers. The stock jumped 3.39 percent.
Next, Tata Steel climbed 2.39 percent. ITC gained 1.11 percent. Bajaj Finserv added 0.67 percent. Bajaj Finance also advanced by 0.65 percent.
In contrast, IT stocks remained under pressure. Infosys recorded the sharpest fall. The stock dropped 2.64 percent in early trade. Tech Mahindra slipped 2.51 percent. HCL Technologies declined 2.12 percent. Tata Consultancy Services lost 1.72 percent. Adani Ports and Special Economic Zone also fell 1.32 percent.
As a result, sectoral rotation became visible. Vijayakumar said investors are shifting funds away from IT. Instead, they are moving toward banking, financials, automobiles, telecom, and pharmaceuticals. These sectors show better earnings visibility.
Furthermore, he advised investors to increase equity exposure gradually. He said current market conditions support long-term investments. However, he expressed concern over rising interest in gold and silver exchange-traded funds.
According to him, many retail investors now prefer precious metals. He called this strategy risky in the present scenario. He urged investors to stay focused on fundamentals instead.
At the same time, foreign institutional investors showed improving sentiment. Vijayakumar noted that FIIs acted as net buyers in eight of the last thirteen trading sessions. This trend signals growing confidence in Indian equities.
In conclusion, markets opened steady but lacked strong momentum. IT stocks continued to face pressure. Meanwhile, metals, banks, and select consumer stocks offered support. Investors now await fresh global cues and corporate updates to decide the next market direction.
