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Indian Stocks Dip for 3rd Day Amid Global Fears
8 Jan
Summary
- Indian equities declined for the third consecutive session.
- Heavyweight selling and geopolitical tensions impacted sentiment.
- Market anticipates range-bound trading before Q3 earnings and US data.
Indian equities extended their decline for a third straight session on Wednesday, with both the Sensex and Nifty closing lower. This downturn was driven by significant selling pressure in heavyweight stocks, coupled with rising geopolitical unease and subdued global market cues, which collectively dented investor confidence.
Market sentiment remains cautious, influenced by a risk-averse approach ahead of the crucial Q3 FY26 earnings season and significant US jobs data. While corporate earnings are projected to improve quarter-on-quarter, foreign institutional investors are reportedly hesitant due to global trade uncertainties. Profit-booking in auto and financial sectors weighed on indices, though pockets of selective buying in IT, pharmaceuticals, and mid-cap stocks offered some support.
Looking ahead, equities are expected to trade within a narrow range. Analysts suggest a 'buy-on-dips' strategy focusing on large-cap themes as a prudent approach in the current macroeconomic environment. Global factors, such as China's export restrictions on rare earth elements, are also heightening supply chain risks, further contributing to market uncertainty.
