Mumbai (Maharashtra) [India]: Indian stock markets began Thursday’s trading session on a subdued note, reflecting mixed global cues. The BSE Sensex opened 214.33 points lower at 77,934.16, marking a 0.27% decline, while the Nifty fell by 55.25 points or 0.23% to open at 23,633.70.
In the previous session, domestic markets rebounded from their lowest points to close with minimal changes. Investors are closely monitoring slower economic growth forecasts and upcoming third-quarter earnings reports, which are fueling market volatility.
Experts anticipate muted market sentiment in the short term, citing global factors such as high US bond yields and uncertainty over potential limited rate cuts by the Federal Reserve.
Ajay Bagga, a market and banking expert, pointed out heavy Foreign Portfolio Investor (FPI) selling as a key contributor to Wednesday’s market volatility.
“Global markets are facing the heat from a strong US dollar, rising US bond yields and uncertainty around a Trump 2.0 economic fallout that could undermine existing supply chains and trade networks,” Bagga said.
“Overall, as the Indian earnings season kicks off post-market hours today, the dark clouds on the horizon are looking ominous. Time to wait out the next fortnight till Trump 2.0 clarity emerges and markets settle down,” he added.
The Federal Reserve’s December meeting minutes indicated a cautious approach to rate cuts, aligning with expectations, further impacting market sentiment.
Varun Aggarwal, MD of Profit Idea, noted the technical position of the Nifty50 index:
“Nifty50 formed a small red candle on the daily chart, indicating a ‘hammer’ pattern, which often signals a potential trend reversal after a decline, though it remains below the critical 200-day Exponential Moving Average (EMA) at 23,700.”
At the National Stock Exchange (NSE), 1,268 stocks advanced, 1,069 declined, and 129 remained unchanged.
Top gainers in the early hours included Bajaj Auto, Tata Motors, Kotak Mahindra Bank, M&M, and Infosys. Meanwhile, major losers were SBI, HDFC Bank, Adani Ports, BPCL, and ICICI Bank.
Sector-wise, IT and Media indices traded in positive territory, while all other sectors were in the red.
Asian markets mirrored a similar sentiment, with Japan’s Nikkei 225 dropping 0.14% and South Korea’s Kospi slipping 0.1%. In the US, markets closed mixed on Wednesday as the Dow Jones gained 0.25%, and the Nasdaq saw a marginal decline of 0.06%. The US markets remain closed today in honor of former President Jimmy Carter.