The BSE Sensex experienced a shift into negative territory during morning trading on Wednesday, relinquishing its initial gains. Currently, the Sensex is trading at 71,977.80 points, reflecting a decline of 208.29 points.
The downturn in the Sensex is primarily attributed to weakness in IT heavyweights, with Infosys and Tech Mahindra both experiencing declines of over 1 percent. Consequently, the IT index has also dipped by more than 1 percent. Additionally, power stocks, including Powergrid and NTPC, are down by 1 percent.
On the other hand, realty stocks have seen an uptick, with the realty index rising by more than 2 percent.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, has highlighted concerns regarding excessive speculation in low-grade stocks, many of which have witnessed substantial gains in a short span. Vijayakumar advises investors to exercise caution and stick to high-quality stocks for added comfort.
Despite the current market conditions, Vijayakumar notes that the ongoing bull market has displayed resilience in bouncing back from downturns. He recommends a "buy on dips" strategy, emphasizing that the market's ability to rebound suggests that the uptrend remains intact. Notably, the recent bounce back is being led by the IT sector, with support from autos and pharma, while the Bank Nifty continues to decline. Vijayakumar suggests that the emergence of new market leaders indicates the potential for new record highs in the near future.
(With Agency Inputs)