Thursday's stock market saw the Nifty index experiencing a slight decline but holding firm above the 20,900 level. This dip in trading is a part of the market's dynamic dance, with the sectors of banks, real estate, and energy emerging as the day's top movers. These sectors' performance indicates a potential shift in market dynamics and investor focus.
Paytm's Setback and Market Performance
Paytm, the digital payment app's parent company, One97 Communications, faced a significant setback on Thursday as its shares nosedived by 20 per cent, falling to 650 rupees each. This plunge was catalyzed by Paytm's decision to slash its small-ticket or personal loan offerings. The company's move came as a response to the recent tightening of lending rules by the central bank.
The Sensex mirrored a similar trend, marking a minor decline of 251 points or 0.36 per cent at 9:55 am. In parallel, Nifty, the 50-company index, experienced a decrease of 54 points or 0.26 per cent. Paytm's performance has caught the attention of analysts, who have revised their ratings and lowered their price projections for the stock in the upcoming months.
Nifty and Sensex: A Closer Look
The benchmark indices, Sensex and Nifty, experienced a slight dip in early trading. Sensex commenced the day 215.59 points lower, opening at 69,438.13, while Nifty marked a 63.15 points decline, initiating trading at 20,878.25. Among the Nifty companies, 21 witnessed advances, while 29 faced declines.
Morning Trading Highlights
Indian shares were expected to open lower on Thursday, following weak cues from the U.S. and Asian markets. However, falling oil prices and declining bond yields on the back of weak U.S. data released overnight may help limit the downside to some extent. The domestic equity benchmarks tumbled in early trade with significant selling observed in key index pivotals. Despite this, the Nifty managed to trade above the 20,850 level.
To provide a deeper insight into these market movements and their implications, financial analysts Nandita and Yatin Mota will be featured live on the program 'MidDay Mood Check.' This segment aims to offer analysis and potentially discuss strategies or expectations for investors concerning the current state of the market and the mentioned sectors.