Sensex and Nifty: At around 10:00 am, the S&P BSE Sensex dropped 310.32 points to reach 72,832.48, while the NSE Nifty50 declined by 90.05 points to settle at 22,122.65.
In short
- Nifty and Sensex open lower as IT stocks decline.
- Early trading sees a lot of volatility in markets.
- Paytm stock hits the upper circuit at 5%.
Benchmark stock indices began the week on a weak note on Monday, as they were pulled down by declines in Information Technology, banking, and financial services stocks.
Around 10:00 am, the S&P BSE Sensex saw a decline of 310.32 points, settling at 72,832.48, while the NSE Nifty50 dropped by 90.05 points, reaching 22,122.65. Early trading witnessed a broader market downturn, attributed to heightened volatility impacting heavyweight stocks.
Early in the trading session, prominent sectoral indices like Nifty Bank, Nifty Financial Services, and Nifty IT registered declines. Notably, the Nifty IT index witnessed a decrease of over 1.2 percent, significantly contributing to the downward pressure on the benchmark indices.
Leading the gainers on the Nifty50 were L&T, Power Grid, Adani Enterprises, Bajaj-Auto, and Cipla. Conversely, the top losers included Asian Paints, BPCL, Axis Bank, Wipro, and Tech Mahindra.
Sensex and Nifty opened lower due to IT stocks decline; Paytm rose 5%
Meanwhile, shares of the embattled digital payments firm Paytm surged by 5 percent, hitting the upper circuit, following the Reserve Bank of India’s (RBI) directive to the National Payments Corporation of India (NPCI) to review requests from third-party app providers.
Deven Mehta, a research analyst at Choice Broking, had predicted that the stock markets would open flat.
Mehata mentioned that the Nifty may discover support levels around 22,150, with additional support anticipated at 22,100 and 22,050. Conversely, he noted that immediate resistance could be encountered at 22,300, followed by 22,350 and 22,450.
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“In Friday’s session, there was some profit booking observed on Nifty and Bank Nifty from higher levels. However, the overall trend remains bullish, so it’s advisable to consider buying the dips with a stop loss set at 22,000 levels. Additionally, traders are suggested to continue booking profits on the higher side in both Nifty and Bank Nifty. Furthermore, there might be specific stock movements expected in the last week of February,” he added.
