Sensex, Nifty fall in early trade; Paytm shares tank 7%, Adani group stocks drop up to 5%

BSE Sensex was trading 178.01 points, or 0.29 per cent, lower at 60,629.21, whereas NSE’s Nifty50 index was down 60.25 points, or 0.34 per cent, at 17,833.20 at 9.20 am.

Domestic equity indices, on the expected lines, opened lower on Friday, tracking the muted global cues over recession fears. Traders across the globe are awaiting US inflation data, which is due next week. It is likely to provide some cues over Fed’s monetary policy move.

On the domestic front, intense FII selling remains a concern for Indian equities. However, increased inflows from domestic investors are supporting the market sentiments. Analysts believe that Q3 earnings would guide the markets in the near term.

At 9.20 am, BSE Sensex was trading 178.01 points, or 0.29 per cent, lower at 60,,629.21, whereas NSE’s Nifty50 index was down 60.25 points, or 0.34 per cent, at 17,833.20. Broader markets were trading with mixed cues as the BSE midcap index was in red, whereas BSE smallcap index rose marginally. Fear gauge India VIX eased further to slip below 13-mark.

All the major sectors were trading in red at the opening tick. The Nifty metal index plunged over a per cent, whereas the IT index also posted similar cuts. Pharma and Realty indexes were down a per cent, each. However, auto, PSU bank and media stocks were marginally up.

Among the Adani Group stocks, Adani Enterprises turned flat after a 10 per cent cut at open. Adani Ports was trading marginally up, whereas NDTV, ACC and Ambuja Cements declined. Adani Power, Adani Transmission, Adani Green, Adani Wilmar and Adani Total Gas fell 5 per cent, each.

In the Nifty50 pack, HCL Technologies dropped more than 2 per cent, whereas Hindalco, Wipro, Tata Steel and Infosys shed over a per cent, each. On the other hand, UPL gained over a per cent among the blue-chip counters. Larsen & Toubro, HDFC Life Insurance and ITC were other key gainers.

With the Budget, monetary policy and earnings season behind us, there are no major triggers to take the market forward. Rallies are likely to be sold since FIIs have been sustained sellers in the market since the beginning of 2023. But, FII selling has declined to Rs 144 crore is a positive, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“Rising inflows when the market is weak is a very healthy trend and can act as a counter to the rising FII outflows. This will bring stability to the market,” he said. “Q3 results from the broader market indicate pressure on margins. Many mid and smallcap results are disappointing. Now, safety is in large caps. Investors should focus on segments.”

In the broader markets, One97 Communications (Paytm) dropped 7 per cent over the bulk deal buzz and addition to ASM stage 1. Sportking India weakened 6 per cent. Lupin and United Breweries plunged 5 per cent as both companies reported poor performance in the December 2022 quarter.

Among the gainers, WPIL extended its gains and hit an upper circuit of 20 per cent strong quarterly earnings. Aarti Surfactants was up 12 per cent, whereas BF Investments gained 9 per cent. Techno Electric & Engineering Company and Spandana Sphoorty Financial gained 7 per cent, each.