Stock markets trade lower in early deals

Mumbai: Equity benchmark indices Sensex and Nifty edged lower in early trade on Thursday tracking a weak trend in global markets.

The 30-share BSE Sensex declined 214.87 points to 84,344.78 in early trade. The 50-share NSE Nifty dipped 56.1 points to 25,762.45.

From the Sensex firms, Sun Pharma, Tata Motors Passenger Vehicles, Mahindra & Mahindra, NTPC, Bharat Electronics and Maruti were among the biggest laggards. However, HCL Tech, Tata Consultancy Services, Tech Mahindra and ITC were among the gainers.

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Hong Kong's Hang Seng index quoted lower, while Shanghai's SSE Composite index traded in positive territory.

US markets ended lower on Wednesday.

"Global markets enter today’s session on a cautious footing following a sharp overnight sell-off in the US. The S&P 500, Nasdaq, and Dow extended their losing streak as investors booked profits in high-valuation technology and AI stocks.

"Investor sentiment also remains cautious ahead of the release of US consumer price inflation data, with divided views in the market over the future trajectory of monetary policy, prompting participants to stay defensive and avoid aggressive positioning," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Asian markets opened on a weak note, mirroring the subdued tone on Wall Street after several sessions of sustained selling, he added.

Foreign Institutional Investors (FIIs) turned buyers on Wednesday as they bought equities worth Rs 1,171.71 crore, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth Rs 768.94 crore in the previous trade.

"On the institutional front, FIIs turned net buyers on December 17 after remaining sellers for the previous 14 sessions, purchasing equities worth Rs 1,171 crore, while DIIs also remained supportive with net buying of Rs 768 crore," Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking Private Limited, said.

Market participants are likely to track global equity trends, crude oil price movements, and institutional fund flows for incremental direction during the session, Shinde added.

Brent crude, the global oil benchmark, climbed 0.65 per cent to $60.07 per barrel.

On Wednesday, the Sensex edged lower by 120.21 points or 0.14 per cent to settle at 84,559.65. The Nifty declined by 41.55 points or 0.16 per cent to 25,818.55.