Sensex, Nifty Slip in Early Trade as IT Stocks Weigh on Markets

Benchmarks Open Lower on Monday​

Indian equity benchmarks open the week on a weaker note, with the BSE Sensex and NSE Nifty declining in early trade on Monday, January 5. The pressure comes largely from selling in heavyweight information technology stocks.

The Sensex slips 125.96 points to trade at 85,636.05 in early deals, while the Nifty declines 30.95 points to 26,297.60.

IT Heavyweights Drag the Indices​

Among the 30 Sensex constituents, technology majors remain the key laggards. Shares of HCL Technologies, Infosys, Tech Mahindra, and Tata Consultancy Services trade lower in early sessions. Banking heavyweight HDFC Bank and power major NTPC also add to the downside.

On the positive side, select stocks provide some support. Bharat Electronics, Tata Steel, Axis Bank, and Reliance Industries trade in the green during early hours.

Institutional Activity Remains Supportive​

Despite the weak opening, institutional flows remain positive. Foreign institutional investors record net equity purchases of Rs 289.80 crore in the previous session, while domestic institutional investors buy stocks worth Rs 677.38 crore, offering some underlying support to the market.

Asian Markets Mixed, US Ends Higher​

Asian equity markets show mixed trends on Monday. Kospi, Nikkei 225, and SSE Composite trade significantly higher, while Hang Seng hovers marginally lower.

Overnight, US stock markets end mostly in positive territory, providing limited cues to domestic equities.

Crude Prices Edge Lower​

In the commodities market, Brent crude slips 0.08 percent to USD 60.70 per barrel, easing slightly in early trade.

Previous Session Recap​

In the previous session on Friday, domestic benchmarks had closed higher. The Sensex advanced 573.41 points, or 0.67 percent, to settle at 85,762.01, while the Nifty gained 182 points, or 0.70 percent, ending at 26,328.55.