Updated March 5th, 2024 at 11:07 IST

Nifty, Sensex open lower amid weak Asian cues; Tata Motors touches record high

The blue-chip index NSE Nifty 50 shed 0.16 per cent to 22,369.50, while the BSE Sensex dropped 0.18 per cent to 73,738.30, as of 9:30 am.

Reported by: Business Desk
Stock market | Image:Republic
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Stock market news: Benchmark indices, NSE Nifty 50 and BSE Sensex opened lower on Tuesday after closing at new record highs for three straight sessions, as Asian peers were subdued and disappointed by the lack of large stimulus measures by China. Meanwhile, Tata Motors saw a notable surge in its shares, climbing as much as 4.50 per cent to surpass the Rs 1,000 milestone for the first time. The rise comes in response to the automaker's announcement of its decision to split into two listed companies, separating its commercial vehicle business from its passenger vehicle arm.

The blue-chip index NSE Nifty 50 shed 0.16 per cent to 22,369.50, while the BSE Sensex dropped 0.18 per cent to 73,738.30, as of 9:30 am.

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Nifty IT, which fell as much as 1.27 per cent, led the losses among the sectoral indices. HCL Tech, Infosys, TCS, LTIM, and Tech Mahindra are the early losers on the Nifty 50 index. A CLSA downgrade on Tata Consultancy Services and HCLTech to 'sell' from 'underperform', citing weak 2024 growth outlook also dragged the stocks. TCS and HCLTech fell about 2 per cent each.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd said, “Dalal Street's optimism is palpable with the GIFT Nifty climbing to 22,508, signaling a bullish market trend that necessitates selective trading amidst a narrowing market breadth. Key highlights include the spotlight on gold financiers like Manappuram and Muthoot Finance due to soaring gold prices, Tata Motors' strategic demerger, and NTPC's investment in expanding its power project.”

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“With Nifty showing strong technical support at 22,050, the market is buoyed by bullish sentiments, although upcoming events like Fed Chairman Jerome Powell's testimony and US nonfarm payrolls data could influence future directions", Tapse added.

VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said, “While the market is steady the small cap index is showing some strain with a cut of 0.5 per cent yesterday. Perhaps there is some selling happening in small caps in response to the SEBI advisory to mutual funds flagging concerns of excessive valuations. Weakness in the small cap segment is likely to continue.”

"The Chinese National People’s Congress which has begun will be keenly watched by the markets. Announcements relating to the initiation of growth stimulating reforms have the potential to attract big money into their stock market, which is now trading at cheap valuations. Therefore, it is important to watch out for developments in China. While there is fundamental support for the Indian stock market, high valuations can constrain further rallies. The market is likely to remain range-bound in the near term. As expected RIL has crossed Rs 3000 level," Vijayakumar added.

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Published March 5th, 2024 at 09:45 IST