Market Caution as IT Stocks Slide and Silver Prices Plummet

The domestic stock markets shifted into a consolidation mode on Thursday, with the Nifty and Sensex showing nearly flat openings. IT stocks remained under pressure, and silver prices plummeted significantly. This cautious market sentiment stems from a recent rally triggered by the India-US deal, as emerging concerns affected specific sectors.

The Nifty 50 index started at 25,755.90, down by 20.10 points, or 0.08%. Meanwhile, the BSE Sensex commenced at 83,757.54, falling by 60.15 points, or 0.07%. This flat opening suggested a period of consolidation at the index level after recent gains. VK Vijayakumar of Geojit Investments noted the Nifty's consolidation without major moves, though significant declines were observed in IT stocks. This was linked to fears regarding Anthropic's new automation tools potentially supplanting outsourced IT services, leading to margin pressures on Indian IT firms.

Across the broader market, the NSE's Nifty 100 index slipped slightly by 0.12%, while the Nifty Midcap 100 and Nifty Smallcap index saw minor declines. Sectoral indices displayed mixed trends; the Nifty Auto index rose by 0.20%, buoyed by steady domestic demand, whereas both the Nifty IT and Nifty Metal indices saw declines, the latter sharply by 1.71%. In individual stocks, Vedanta and Hindustan Zinc experienced notable early trading declines.

Fund flows showed FIIs being marginal net buyers at Rs 29.8 crore, with DIIs registering stronger activity at Rs 249.5 crore net purchases. Following India's growth-centric Budget and trade deals, the growth outlook remains robust, fostering domestic consumption. Continued low-interest rates are predicted to bolster the auto sector and potentially influence consumer durables leading into summer, enhancing market resilience. Subsequent halts in FII selling and any continuation of marginal buying could further fortify market conditions.

In commodities, silver prices took a steep dive, dropping 9% to Rs 2,44,654 on the MCX. Gold prices also fell, declining by 1.25%. These commodity market trends contributed to the overall cautious sentiment permeating the markets. (ANI)