Stock Market: IT limps back to walk on Dalal Street; indices tank as FIIs short -

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By S Jha

New Delhi, January 16: In five days, Dow Jones has gained almost two per cent. Nifty in contrast has shed almost three-fourth of a percentage during same days. In the US, the traders are betting on the markets having bottomed out, while the Indian bourses continue to slide.

Inflation is seen having peaked in the US and Europe, and correspondingly their equity markets are steadily rising. But the Indian equity markets remain in the nervous grip of the bears, with rallies being sold aggressively. The Bank Nifty opened on a bullish note on Monday, but lost the strength soon enough to slide deep into the reds. Same was the story of Nifty and Sensex. For the traders, indices are sideways, and sell on the rise is the theme, with buy on dips to make gains during the day.

The foreign institutional investors (FIIs) are shorting the bourses, as they have been seller in the market this month without any exception. On Monday again, FIIs sold a net of Rs 751 crores, while their domestic counterparts pitched in with Rs 686 crores. The DIIs as a trend buy into a falling market, while the FIIs essentially are seen to turn the bourses upwards when they buy into the equity markets.

The IT stocks, the worst performing sector of 2022, showed early signs of coming out of gloom, tracking the positive commentaries in the US, which is their principal catchment region for revenue. Tech Mahindra led the bullish charge, as the scrip gained strongly on Monday, followed by Infosys, HCL Technology and Wipro. TCS in contrast was down by one per cent.

The telecom stocks have been hammered in the last few days, with Bharti Airtel bearing the brunt of the bears. Metal stocks were also shorted on Monday. Metal, Auto, financial dragged the bourses. The likes of Axis Bank, which had been strongly gaining slumped by over two per cent on Monday. It’s being seen that Nifty is easily giving out the level of 18000 to go lower, which the charters interpret as signs of the lower trading range in the making for the 50-stock index.