iNDICA NEWS BUREAU-
The Indian stock markets opened on a flat note on Thursday, reversing the selling trend seen earlier in the week, as investors remain in a wait-and-watch mode ahead of Prime Minister Narendra Modi’s visit to the United States.
The markets are closely watching the potential trade outcomes from the visit, as well as the geopolitical developments surrounding the Russia-Ukraine conflict.
The Nifty 50 index opened at 23,055.75 points, up by 10.50 points, or 0.05%, while the BSE Sensex opened at 76,201.10, gaining 30.02 points, or 0.04%.
Among the sectoral indices on the National Stock Exchange (NSE), most sectors posted marginal gains, except for Nifty Bank, Nifty FMCG, and Nifty Metal, which remained under pressure.
Experts believe that the markets are in a holding pattern, awaiting developments from PM Modi’s US visit. The recent phone call between U.S. President Donald Trump and Russian President Vladimir Putin has helped improve market sentiment globally, but Indian markets are still facing pressure due to continued Foreign Portfolio Investor (FPI) selling.
Ajay Bagga, a banking and market expert, shared insights on the situation, noting that while PM Modi’s meetings with President Trump are expected to yield agreements in key areas such as trade, energy, and defense, the Indian markets are still under the weight of sustained FPI outflows. Bagga also highlighted that the potential for a peace deal between Russia and Ukraine could lead to increased oil and gas supplies, lower prices, and a boost to global sentiment, further impacting market behavior.
The Nifty 50 stocks saw a mixed opening, with 28 stocks gaining and 21 stocks declining in the early session. Kotak Mahindra Bank and Cipla emerged as the top gainers, while Titan and Eicher Motors were among the top losers.
Shares of Kotak Mahindra Bank surged following the Reserve Bank of India’s decision to lift all restrictions it had placed on the bank back in April 2024. This move allows Kotak Mahindra Bank to onboard new customers via its online and mobile banking platforms and issue fresh credit cards.
From a technical perspective, market analysts are eyeing critical levels for the Nifty index. Akshay Chinchalkar, Head of Research at Axis Securities, noted that while the Nifty ended lower for the sixth consecutive day, there was a strong buying presence near the 22,800 level, which is aligned with the rising trendline from the COVID-era. The 22,700-22,800 range will be crucial support for the index, with resistance expected between 23,155 and 23,293.
Today’s earnings season also adds to market focus, with major companies such as Hindalco Industries, United Breweries, Ipca Laboratories, and SJVN set to announce their third-quarter financial results.
On a broader scale, other Asian markets also saw gains on Thursday, with Japan’s Nikkei surging over 1.3%, Hong Kong’s Hang Seng rising by 1%, Taiwan’s Weighted index climbing 0.36%, and South Korea’s KOSPI jumping by 0.86%. However, Singapore’s market remained under pressure, dipping by 0.05%.
As global markets remain volatile and domestic concerns persist, Indian investors are likely to remain cautious as they await further clarity on trade developments and geopolitical tensions.
