Mumbai (Maharashtra) [India]: The Indian stock markets opened on a cautious note Thursday, with major indices slipping into the red due to selling pressure and weak investor sentiment.
The Sensex began the day 175.15 points lower at 76,229.84, while the Nifty dropped by 51.20 points, opening at 23,104.15.
Market breadth among Nifty 50 companies reflected the subdued mood, with 10 stocks advancing, 40 declining, and 1 remaining unchanged.
Top Gainers and Losers
Amidst the broader decline, Ultra Cement, Wipro, TCS, Grasim, and Infosys emerged as top gainers, providing some optimism. On the other hand, Hindustan Unilever, Nestle India, SBI, L&T, and BPCL led the list of top losers, mirroring the bearish sentiment.
Expert Insights
Ajay Bagga, a noted banking and market expert, commented on the market’s current challenges, stating:
“India remains one of the most underweight markets as per a recent Global Investors Survey by a major foreign brokerage house. The expectations are low going into the Union Budget 2025, with many analysts citing the lack of fiscal space as the primary cause for the lack of a durable fiscal stimulus.”
He noted the absence of a pre-budget rally, attributing it to weak investor confidence:
“There has been no pre-budget rally, and the markets have given up all gains made since the declaration of the results of the National Elections in June 2024. US exceptionalism continues, and Asian markets are following the lead. The Bank of Japan rate hike expected on Friday is a well-transmitted rate hike that will not surprise the markets.”
Bagga also flagged concerns over the Yen carry trade, suggesting that the anticipated Bank of Japan rate hike might lead to further selling in stock markets:
“With 10 days to go for the Union Budget, the lack of any sentimental boost for the markets points to really low expectations amongst investors. This reflects the slowing economy, muted corporate earnings, and the lack of any counter-cyclical policy initiative on either the fiscal or monetary fronts.”
Broader Challenges
Factors such as a slowing domestic economy, subdued corporate earnings, and the absence of substantial fiscal or monetary policy measures have compounded market uncertainties.
As global and domestic pressures persist, market participants are expected to remain cautious ahead of key developments like the Union Budget 2025 and global monetary policy decisions, including the Bank of Japan’s impending announcement.