Indian markets slide in early trade, Sensex drops by 215.59 points

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Benchmark indices, Sensex and Nifty, experienced a decline in early trade on Monday, in line with weak global market trends and caution ahead of the Wholesale Price Index (WPI) inflation data due to be released later in the day.

The 30-share BSE Sensex dropped by 215.59 points to 81,917.53 in early trade, while the NSE Nifty fell by 49.45 points to 24,718.85. The decline came as investors adopted a cautious approach, awaiting important economic data and analysing global market developments.

Among the 30 Sensex stocks, major laggards included JSW Steel, Titan, Bharti Airtel, Nestle, Mahindra & Mahindra, Tata Consultancy Services (TCS), NTPC, and Sun Pharma, which contributed significantly to the market's fall. On the other hand, ITC, Reliance Industries, UltraTech Cement, Bajaj Finance, IndusInd Bank, and Asian Paints were among the gainers, providing some support to the market.

In Asian markets, sentiment was largely negative with major stock markets such as Seoul, Tokyo, and Hong Kong trading lower. However, Shanghai bucked the trend and was in the green, showing some resilience in an otherwise weak regional market. On Friday, Wall Street closed mostly lower, further contributing to global uncertainties.

Ameya Ranadive, a Chartered Market Technician and Senior Technical Analyst at StoxBox, commented that stock markets in India were likely to remain cautious due to mixed global cues. Investors are particularly awaiting the US Federal Reserve's policy rate decision later this week, which is expected to influence investor sentiment globally.

Foreign Institutional Investors (FIIs) continued their buying spree, purchasing equities worth Rs 2,335.32 crore on Friday, according to exchange data. However, V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, cautioned that while FIIs have turned net buyers in December after several months of relentless selling, the future direction of their investments is uncertain. Factors such as a strong US dollar and high bond yields in the US remain potential headwinds for capital flows into emerging markets like India.

Meanwhile, global oil prices also showed a slight dip, with Brent crude falling 0.31 per cent to USD 74.26 per barrel, adding to the prevailing caution in the market.

On Friday, the Sensex had gained 843.16 points or 1.04 per cent, settling at 82,133.12, while the Nifty had climbed 219.60 points or 0.89 per cent to end at 24,768.30. However, the early morning decline suggests that market sentiment remains fragile amid ongoing global and domestic uncertainties.

(With inputs from PTI)