Indian stock market traded in a see-saw movement with broad-based selling pressure across indices with the exception of IT stocks on Friday, January 10. India’s volatility index surged more than 15.5, while major draggers were midcap, smallcap and PSU bank stocks. Q3 results and global trends impact the current market.

Sensex Price:

The benchmark slipped by at least 521 points to hit an intraday low of 77,099.55. TCS, Tech Mahindra, Infosys, and HCL Tech were top bulls. However, sharp selling in NTPC, IndusInd Bank, M&M, Power Grid, and Ultratech Cement were top bears, dragging the market situation.

However, Sensex soon after picked up momentum by surging 245 points to cross 77,800 levels.

Nifty 50 Price:

The 50-scrip benchmark shed as much as 182.15 points to hit an intraday low of 23,344.35.

A similar trend was seen in Nifty 50 as well. In the past few minutes, the Nifty traded with mild gains to shoot up by 70 points and hover around 23,600 levels.

India’s volatility index:

India’s VIX surged by 3% to cross 15 mark. It touched an intraday high of 15.52.

Volatility Index is a measure of market’s expectation of volatility over the near term. Volatility is often described as the “rate and magnitude of changes in prices” and in finance often referred to as risk.

Major Movers of January 10:

IT Stocks Outshine:

The Nifty IT index surged by more than 2% or 900 points to trade at 44,026.40. All IT stocks on the index traded bullish with TCS, LTIMindtree, Tech Mahindra, Wipro, Persistent, Mphasis and Persistent Systems surging by 1% to 5%.

IT stocks skyrocketed after the largest tech company of India, TCS announced its Q3 results under which profitability was in-line with estimates, but revenue muted. However, brokerages have indicated that TCS outlook is far better, which turned investors bullish in overall sector.

PSU Bank In Deep Red:

Nifty PSU Bank dipped by 1.7% to trade 6,149.30. Union Bank, IOB, Central Bank of India, PNB, UCO Bank, PSB, Bank of Baroda, and SBI plunged by 1.5% to 3%.

Auto Stocks Crushed:

Nifty Auto stocks slipped by 2% to hit an intraday low 22,896.05. Ashok Leyland, Apollo Tyre, Motherson, Eicher, Balkrishna, Bosch, TVS Motors, Bajaj Auto, M&M, Bharat Forge and Maruti Suzuki dipped by 1% to 3%.

Other Indices:

Nifty Media, Nifty Metal, Nifty Pharma, and Nifty Private Bank indexes also slipped by about 1% each.

What Is Impacting Stock Market?

As per Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, in the context of the looming uncertainty regarding President Trump’s likely actions, the market is unlikely to rally in the near-term. There appears to be no respite to the sustained FII selling which touched Rs 7170 crores yesterday. This will continue to put pressure on the market.

Further, Vijayakumar added, since the results season has started the market will witness lots of stock-specific action in response to the results. Results of TCS indicate that the IT sector will continue to remain resilient. Results of banking majors will be good but in the context of FII selling the sector may not perform in response to the results. Pharma and select auto stocks like Eicher, M&M and Bajaj Auto are potential outperformers in a weak market.