Stock market today: Sensex, Nifty open lower as AI disruption fears grip IT sector
Mumbai: Indian equity markets began the trading week on a subdued note on Monday, as persistent anxieties regarding artificial intelligence (AI) disruptions in the information technology sector dampened investor appetite.
The Nifty 50 benchmark fell 47.50 points, or 0.19%, to open at 25,423.60. Simultaneously, the BSE Sensex dropped 146.36 points, or 0.18%, starting the session at 82,480.40. The early losses signalled a "risk-off" mood among traders as they weighed structural shifts in India’s massive IT services industry.
Industry analysts pointed to the evolving AI landscape as a primary pressure point for heavyweight tech firms. "Persistent concerns around AI-driven disruption continue to act as a key overhang for IT heavyweights, reversing part of the optimism earlier sparked by the US-India interim trade framework and reinforcing a broader risk-off undertone," said Ponmudi R, CEO of Enrich Money. He added that market confidence hinges on the "stabilisation within the IT sector."
Market Breadth and Foreign Flows
The weakness extended into the broader market, with smaller companies facing steeper declines:
- Nifty Midcap 100: Down 0.46%
- Nifty Smallcap 100: Down 0.62%
- Nifty 100: Down 0.22%
Foreign Institutional Investors (FIIs) have adopted a cautious and "mixed" stance in recent sessions, though Domestic Institutional Investors (DIIs) have provided a floor for the market through consistent inflows. Analysts expect a period of consolidation as investors await "clearer direction from global macro signals."
Sectoral and Commodity Trends
While most sectors faced selling pressure, the Nifty IT index defied the broader trend with a marginal gain of 0.04%. Conversely, the Nifty Metal index led the losers with an 0.81% drop, followed by PSU Banks at 0.46% and FMCG at 0.18%.
The downturn was mirrored in the precious metals market on Monday:
- Gold: Prices for 24-karat gold retreated 0.68% to Rs 154,830 per 10 grams.
- Silver: The metal saw a sharp correction, falling 2.92% to Rs 237,222 per kilogram.
Global Context
Asian markets remained largely stagnant. Japan’s Nikkei 225 dipped 0.09% to 56,890, while Hong Kong’s Hang Seng managed a slight 0.29% gain. Exchanges in South Korea and Taiwan were closed for public holidays, contributing to the limited volume and cautious sentiment across the region.
With inputs from ANI