The Indian stock market experienced moderate losses in early trading on Tuesday, as key indices such as the Nifty 50 and Sensex saw declines. Amid weak market sentiment, Hyundai Motor India’s highly anticipated IPO listed at a discount, further weighing on investor confidence.
At 10:25 AM IST, the S&P BSE Sensex was down 204.86 points, or 0.25%, trading at 80,948.71. The Nifty 50 index slipped 71.40 points, or 0.29%, to 24,709.70, breaking below the 24,750 mark. In broader markets, the S&P BSE Mid-Cap index dropped by 1.11%, while the S&P BSE Small-Cap index shed 1.94%, signaling broad-based selling pressure.
The market breadth was weak, with 824 stocks advancing against 2,767 stocks declining on the BSE. Meanwhile, 117 stocks remained unchanged, reflecting cautious investor sentiment.
Hyundai motor India IPO lists at a discount
The debut of Hyundai Motor India on the stock exchanges did not go as planned. The stock listed at ₹1,931 on the BSE, which represented a 1.48% discount to its IPO issue price of ₹1,960 per share. At its current trading price of ₹1,865.75, the stock is down 4.81% from its IPO price. Despite being a well-known player in the auto sector, Hyundai Motor India’s debut struggled to gain momentum, with market volatility and high IPO pricing weighing on the stock’s performance.
During the trading session, the stock reached a high of ₹1,968.80 and a low of ₹1,846. By mid-morning, over 940,000 shares of the company had traded hands. The weak start has led analysts to urge caution, suggesting that investors wait for the stock to stabilize before making any long-term decisions.
Market results and performance
The day also saw mixed corporate earnings results across various sectors. Notably:
- Aditya Birla Real Estate saw its stock fall by 4.29%.
- Adani Energy Solutions managed to gain 0.05%, while Adani Green Energy slipped 0.85%.
- Persistent Systems lost 0.39%, and Amber Enterprises India recorded a significant drop of 9.59%.
- Bajaj Finance was up slightly by 0.06%, while Can Fin Homes dropped by 1.83%.
- Chennai Petroleum Corporation fell 3.80%, and Gabriel India dropped 1.67%.
- ICICI Prudential Life Insurance bucked the trend, gaining 1.18%, while IIFL Securities tumbled 5.08%.
- Indus Tower slipped 1.12%, and ICICI Securities gained 0.59%.
Additional companies such as Jubilant Ingrevia, Kajaria Ceramics, Olectra Greentech, Shoppers Stop, SRF, Supreme Industries, Ugro Capital, Varun Beverages, and Zensar Technologies will report their earnings later today, with investors closely watching for any surprises that could shift market sentiment.
Nifty realty index and real estate sector struggles
The Nifty Realty index declined sharply by 2.48%, continuing a downtrend for the second consecutive trading session. The index has lost 3.84% over the past two sessions as real estate stocks have come under pressure amid growing concerns over higher interest rates and a potential slowdown in the housing market.
Key losers within the sector include:
- Phoenix Mills, which fell 4.16%.
- DLF, down 2.58%.
- Prestige Estates Projects, slipping 2.56%.
- Macrotech Developers, dropping 2.1%.
- Brigade Enterprises, down 2.06%.
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Other notable declines in the real estate space were seen in Sobha, which dropped 1.83%, and Raymond, which fell 1.69%. Oberoi Realty, Mahindra Lifespace Developers, and Godrej Properties also recorded declines, contributing to the overall weakness in the sector.
Stocks in the spotlight
Several individual stocks made headlines during the trading session:
- Bhansali Engineering Polymers experienced a sharp decline of 6.94% after the company reported a 3.92% drop in consolidated net profit for Q2 FY24. The company’s revenue did, however, increase by 16.87% during the quarter to ₹367 crore.
- 360 One WAM fell 5.32% despite reporting a 32% jump in consolidated net profit to ₹245 crore in Q2 FY25 compared to ₹186 crore in Q2 FY24. The company’s total income surged 43% year-on-year to ₹890 crore, but the stock faced profit-booking after recent gains.
Outlook and investor sentiment
Tuesday’s market action has left investors grappling with a mix of caution and uncertainty. The underwhelming debut of Hyundai Motor India and declines in real estate stocks have added to the negative sentiment, leading to a broader sell-off in mid-cap and small-cap shares.
Market participants are watching for more earnings results and any potential policy announcements that could provide direction to the markets. As inflation and interest rate concerns persist, the overall outlook for the Indian markets remains cautious.
For investors, the current market volatility suggests that it may be wise to adopt a wait-and-watch approach, especially in sectors like real estate and IPOs that are facing immediate downward pressure.
