Mumbai, September 9 (Udaipur Kiran) : The Indian stock market saw a sluggish start on Wednesday, September 9, with major indices opening in the negative territory. At 9:22 AM, the Sensex dropped by 533 points, or 0.71%, to reach 75,044, while the Nifty fell by 135 points, or 0.57%, settling at 23,498.
The IT and services sectors were the primary contributors to this decline, with Nifty IT and Nifty Services emerging as the top losers. Other sectors, including Nifty Financial Services, Nifty Realty, Nifty Auto, Nifty PSU Bank, Nifty Private Bank, Nifty FMCG, Nifty Media, Nifty Consumption, Nifty Oil & Gas, and Nifty India Manufacturing, also displayed weakness.
In contrast, Nifty Energy, Nifty Healthcare, Nifty PSU, Nifty Pharma, Nifty Metal, and Nifty Commodities were among the few sectors that traded in the green.
Notable gainers within the Sensex pack included L&T, NTPC, Sun Pharma, Power Grid, Tata Steel, BEL, Adani Ports, and Kotak Mahindra Bank. Conversely, major losers included HCL Tech, Tech Mahindra, Infosys, TCS, HUL, M&M, Bharti Airtel, Bajaj Finance, HDFC Bank, UltraTech Cement, ICICI Bank, ITC, Titan, Maruti Suzuki, and Asian Paints.
Asian markets showed mixed performance, with Tokyo, Shanghai, Bangkok, and Seoul in the green, while Jakarta was in the red. The US markets closed lower on Tuesday, with the Dow Jones dropping by 1.18% and Nasdaq declining by 0.32%.
Market analysts pointed to two significant challenges impacting the current market scenario. Firstly, rising tensions between the US and Iran have pushed Brent crude prices close to $100 per barrel, increasing pressure on the economy. Secondly, a rapidly expanding IPO market has led to liquidity constraints, contributing to the ongoing decline in the Nifty index. Notably, the impact of the IPO market dynamics appears to be more pronounced than the geopolitical tensions.
Since June, the listing gains from IPOs have surged to approximately 22%, attracting both retail and institutional investors. This trend is understandable, given that Nifty has experienced a return of -9.5% so far this year. Even Foreign Institutional Investors (FIIs), who have sold equities worth ₹284,000 crore through exchanges this year, have invested around ₹36,000 crore in IPOs during the same period.
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