- Sensex falls 307 points to 77,307, while Nifty slips 23 points to 23,503 by midday.
- IT stocks surge, with TCS gaining 5.89% after strong quarterly results.
- Reliance Industries’ dip seen as “overdone” by Goldman Sachs amid mixed Q3 expectations.
Indian equity markets faced mixed sentiment on Thursday, as the Sensex dropped 307 points and Nifty declined 23 points by 2:40 pm. The IT sector stood out with notable gains, driven by TCS’s stellar quarterly results, which pushed its stock up by 5.89%.
Amid this, retail investors showed resilience with record SIP inflows of ₹26,000 crore in December 2024, demonstrating continued trust in equities. Conversely, banking stocks faced selling pressure, while Reliance Industries‘ 15% dip since October has been flagged as an overreaction by Goldman Sachs.
IT Stocks Propel Gains, Broader Market Weakens Amid Banking Sector Pressure
The Sensex and Nifty experienced a muted session, with the Sensex slipping 307 points to 77,307 and Nifty hovering near 23,503 by afternoon. While broader market indices showed weakness, the IT sector emerged as the standout performer. TCS led the charge, surging 5.89% after releasing upbeat quarterly earnings, bolstered by gains from Tech Mahindra, Infosys, Wipro, and HCL Technologies.
Despite the IT sector’s positive momentum, market sentiment was dampened by heavy selling in banking stocks. Stocks such as IndusInd Bank and SBI were among the top laggards, contributing to the overall decline. Furthermore, Adani Enterprises and Sun Pharma also saw notable corrections, underlining the market’s cautious tone.
Retail participation continues to shine as a beacon of optimism, with December 2024 SIP inflows reaching a record high of ₹26,000 crore. This reflects a growing preference for systematic investments even amid volatility. Additionally, sectoral diversity in investor interest suggests a gradual shift toward technology and defensive sectors.
Goldman Sachs has offered an optimistic outlook on Reliance Industries, despite its recent 15% slump. The brokerage firm believes that the dip is overdone and sees potential for recovery as telecom earnings remain robust and retail restructuring progresses. This perspective offers hope for stabilizing broader indices in the coming sessions.
The stock market‘s mixed performance highlights sectoral divergence, with IT stocks offering a silver lining amid broader challenges. Retail confidence and selective optimism in underperforming stocks like RIL hint at resilience in market sentiment.
“Opportunities lie in the midst of adversity.”
