Markets@11: Sensex slips below 86,000 as markets face mini-correction; Bank Nifty and IT sector hit hard

The stock markets experienced a slight downturn today, indicating a potential mini-correction. The Sensex dipped below 86,000, while the Nifty fell below 26,000 during the morning session. Major indices registered a decline of approximately 0.80% each, with mid-cap and small-cap indices also falling by around 1%. The Bank Nifty dropped by over 1%

Sector performance

The IT sector struggled today, with the IT index dropping more than 1%. Tech Mahindra saw a decline of nearly 2%, although losses were later moderated as trading continued.

In contrast, Reliance Industries saw its shares decrease by over 1% in the morning, despite receiving approval from the Union Information and Broadcasting Ministry for the merger of its non-news channels with the Star Network.

Stock highlights

Japanese brokerage Nomura has raised its target price for Federal Bank to ₹240, while the stock was trading at ₹193 this morning.

On a positive note, rising iron ore prices in the global market pushed NMDC shares up by 4%. Shares of steel and aluminium companies also saw gains this morning.

However, most automotive stocks faced a downturn, with Hero MotoCorp falling by 4%. Mahindra & Mahindra and Bajaj Auto also experienced declines, down by 1.5% each.

In contrast, Hind Rectifiers surged by 3.5% following the announcement of a ₹98 crore contract from the Railways.

PC Jewellers continued its upward trend, rising by 5% today.

Exchange fees and currency

Both BSE and NSE have announced an increase in transaction fees and a revision of their fee structures. This change may force discount brokers to raise their rates, potentially leading to a decrease in trading volume.

In currency markets, the Indian Rupee weakened this morning, with the dollar opening at ₹83.71 before rising to ₹83.80.

Commodity prices

Gold prices fell to $2,653 per ounce in the international market, later recovering slightly to $2,656. In Kerala, the price of 18-carat gold used for jewellery making came down by Rs 120 per sovereign (8-gram) to settle at Rs 56,640.

Crude oil prices experienced a minor decline, with Brent crude falling to $72.31 from $72.49.