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Mumbai, February 5:
Domestic stock markets entered a consolidation phase on Thursday. Benchmark indices Nifty and Sensex opened almost flat. However, IT stocks remained under pressure. At the same time, silver prices fell sharply by 9%.
The market mood stayed cautious after the recent rally triggered by the India-US deal. Still, fresh concerns started affecting specific sectors, especially IT and metals.
Nifty and Sensex Open Nearly Flat
The Nifty 50 opened at 25,755.90, down 20.10 points or 0.08%.
Meanwhile, the BSE Sensex opened at 83,757.54, slipping 60.15 points or 0.07%.
This flat opening indicates that the market is now in a consolidation zone after recent gains.
Expert View: Consolidation With Sector Rotation
VK Vijayakumar, Chief Investment Strategist at Geojit Investments, said the Nifty is showing no major index-level movement. However, he highlighted strong changes within Nifty stocks.
He pointed out that IT stocks declined sharply due to a sell-off in US tech markets. According to him, the fall started after Anthropic launched new automation tools. The market fears that automation could replace outsourced IT services.
As a result, investors expect margin pressure for Indian IT companies. However, the real impact is still uncertain.
Broader Market Performance
In the broader market:
- Nifty 100 slipped by 0.12%
- Nifty Midcap 100 lost 0.04%
- Nifty Smallcap declined by 0.31%
This shows weakness across mid and small-cap segments as well.
Sectoral Indices Show Mixed Trend
Sectoral indices on NSE showed mixed movement:
- Nifty Auto gained 0.20%
- Nifty IT declined 0.36%
- Nifty Metal dropped sharply by 1.71%
Meanwhile, indices like Media, Pharma, PSU Bank, Healthcare, and Consumer Durables traded in the green with marginal gains.
Stock Highlights: Vedanta and Hindustan Zinc Fall
Among individual stocks:
- Vedanta fell 3% to Rs 661
- Hindustan Zinc declined 5% to Rs 605
The metal sector remained weak due to selling pressure.
FII and DII Data
On the fund flow front, Wednesday’s data showed:
- FIIs were marginal net buyers at Rs 29.8 crore
- DIIs remained strong buyers with net purchases of Rs 249.5 crore
This indicates domestic institutions are still supporting the market.
Commodities: Silver Tanks 9%, Gold Also Falls
In the commodities market, silver saw a sharp decline.
Silver prices dropped 9% to Rs 2,44,654 on MCX.
Gold prices also fell 1.25% to Rs 1,51,127 per 24 karat.
This decline added to the cautious sentiment across financial markets.
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