Indian equity markets opened on a weak note on Thursday, tracking losses in global markets and continued selling pressure in IT and metal stocks. The S&P BSE Sensex fell over 225 points, while the NSE Nifty50 slipped below the 25,700 mark in early trade, pausing a three-session rally.
According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments, the Nifty is currently in a consolidation phase, with limited movement at the index level but sharp sectoral shifts beneath the surface. He noted that the recent sell-off in US technology stocks has spilled over into Indian IT shares, driven by concerns that new automation tools introduced by AI firms like Anthropic could disrupt the traditional outsourced IT services model, leading to potential margin pressure for Indian IT companies.
In contrast, domestically driven sectors continue to show resilience. Stocks linked to consumption, banking, telecom, and automobiles remain strong, supported by a growth-focused Union Budget, improving trade ties with the US and EU, and a low-interest-rate environment. Vijayakumar added that sustained domestic consumption and easing foreign investor selling could help stabilise markets in the near term.
Investors are closely watching foreign institutional investor (FII) activity, as a shift from selling to consistent buying could provide further strength to Indian equities.
