Benchmark stock market indices fell on Wednesday as government data estimated economic growth in FY25 to decelerate to 6.4%, much lower than the 8.2% in FY24.
The S&P BSE Sensex was down 141.64 points to 78,057.47 at 10:09 am, while the NSE Nifty50 was trading 42.60 points lower at 23,665.30.
All the other broader market indices were also trading in the red as the situation remains volatile on Dalal Street.However, shares of Reliance Industries Limited (RIL) rose over 2% and helped counter the negative trend.
The top five gainers on the Nifty50 were Reliance Industries Limited, Dr Reddy’s Laboratories, ONGC, Axis Bank and BPCL.
On the other hand, the top losers were Trent, Shriram Finance, Titan, BEL and Adani Ports.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services also highlighted that the trend of strong US macros weakening emerging markets is continuing.
“The US 10-year bond yield has spiked to 4.67% on better-than-expected jobs numbers and indications of the services sector doing very well. This means the Fed may hold rates in January leading to further strengthening of the dollar and rising bond yields,” he said.
Vijayakumar added that the fall out of this on the Indian macros is that the RBI may hold rates in February against the market expectation of a cut.
“In this macro setting, FIIs are likely to continue selling, putting pressure on the market. Large caps, despite fair valuations, may continue to be on the defensive,” he said and advised investors to take a slightly long-term view of the market and buy largecaps in financials, IT, pharmaceuticals and select autos.
“These segments will bounce back in a few months when macros turn positive for India.”
