Mumbai (Maharashtra) [India]: Indian stock markets opened slightly higher on Tuesday despite ongoing selling pressure from foreign investors, which continues to dampen market sentiment.
The Nifty 50 index opened at 22,568.95, gaining 21.40 points (0.09%), while the BSE Sensex started at 74,706.60, rising 104.48 points (0.14%).
Market analysts attribute the subdued market mood to weak corporate earnings, concerns over economic slowdown, and persistent Foreign Portfolio Investor (FPI) outflows. As the February derivatives expiry approaches, investors are closely tracking movements for further trends.
Ajay Bagga, a banking and market expert, commented on the current sentiment, saying:
“Indian markets are in deep pessimism due to 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.”
Sectoral Performance and Market Movers
The National Stock Exchange (NSE) displayed mixed trends at the opening bell. Nifty Auto, Media, Metal, and Realty indices opened in the red, while other sectors saw positive movement.
Among Nifty 50 stocks, 26 opened in the green, 23 declined, and one remained unchanged. The top gainers in early trade included Shriram Finance, Bajaj Finance, and IndusInd Bank, whereas Ultratech Cement, Bajaj Auto, Grasim, and Trent were among the major losers.
Akshay Chinchalkar, Head of Research at Axis Securities, analyzed the market trends, stating:
“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.”
Investor Outlook
As global and domestic factors continue to influence market trends, investors remain cautious about the near-term outlook. The focus now shifts to whether the markets can sustain gains amid broader economic concerns and how they will navigate through the February expiry session.