Mumbai (Maharashtra) [India]: The Indian stock markets opened slightly higher on Tuesday, despite persistent selling pressure from foreign investors, which continues to dampen market sentiment.
The benchmark Nifty 50 index began trading at 22,568.95, gaining 21.40 points (0.09%), while the BSE Sensex opened at 74,706.60, rising 104.48 points (0.14%).
Market analysts attribute the cautious sentiment to muted corporate earnings, concerns over an economic slowdown, and ongoing outflows from Foreign Portfolio Investors (FPIs). Investors are closely watching market trends as the February derivatives expiry approaches.
Ajay Bagga, Banking and Market Expert, told media,
“Indian markets are in deep pessimism due to the muted earnings, economic slowdown, and FPI outflows. The RBI’s move to remove the foot off households’ credit risk weights would normally lead to a rally in banking stocks. The MFI loans drag is already digested in the price of financials. We have to wait and watch to see how today’s February expiries progress. Overall, it’s deep dark clouds with the sun trying to break through.”
Sector-wise, the National Stock Exchange (NSE) saw mixed trends at the opening bell. Nifty Auto, Media, Metal, and Realty indices opened in the red, while other sectors started the session positively.
Among the Nifty 50 stocks, 26 stocks advanced, 23 declined, and one remained unchanged. Early trade saw Shriram Finance, Bajaj Finance, and IndusInd Bank as top gainers, while Ultratech Cement, Bajaj Auto, Grasim, and Trent were the biggest losers.
Akshay Chinchalkar, Head of Research at Axis Securities, commented,
“The Nifty ended down for the sixth day along with the India VIX, which means investors may be thinking that in the near term at least, the downside is limited. Still, Tuesday’s attempted rebound failed to stick and generated a candle with a long upper shadow, which means there is serious overhead resistance. Support remains anchored between 22,370 and 22,500, while bulls need a daily close above 22,720 to make a run toward the next resistance between 23,050 and 23,280.”
With both global and domestic factors influencing market movements, investors remain cautious about the short-term outlook. The focus now shifts to how the markets will navigate through the February expiry session and whether buying interest can sustain gains despite broader economic concerns.