Indian stock markets opened flat on Thursday with a marginal dip, as global markets faced pressure from weak economic data in the U.S.
The Nifty 50 index opened with a dip of 52 points, or 0.2 per cent, at 25,093.35 points, while the BSE Sensex index declined by 0.04 per cent, or 30 points, to open at 82,171.64 points.
At 9:43 am, Sensex was trading 336.02 points lower at 81,865.14, whereas Nifty was trading 83.70 points down at 25,061.40.
Experts highlighted that the stock markets are facing pressure as major economic data, including the US monthly payroll data, is due this week. If this report also comes weak, the markets may slide further.
“US Monthly Payrolls data day is here. Another poor report will raise chances for a 50 bps cut on Sep 18th. A strong report will limit expectations to a 25 bps cut. US markets have been seeing outflows in the last two weeks and we expect this trend to continue as investors take a risk off stance going into Sep 18th. Indian markets will take their cues from these global developments. Expect volatility and weak markets. Positions will be kept light given the event risk this evening from the US Payrolls data” said Ajay Bagga, Banking and Market Expert.
In the broad market on the National Stock Exchange, Nifty Next 50, Nifty 100, Nifty 200, and other major indices faced pressure during the opening session. In the sectoral indices, Nifty Bank, Nifty Auto, and Nifty FMCG faced selling pressure, while Nifty IT, Nifty Media, and Nifty Pharma gained.
“The Nifty 50 formed a small negative candle on the daily chart. The previous downside gap from 4th September remains a significant resistance around 25,250 levels. This technical pattern suggests a lack of market strength to overcome this resistance, indicating potential further consolidation. The short-term trend for Nifty remains choppy with a bearish bias” said Varun Aggarwal, MD, Profit Idea.
In global markets, US indices closed lower for the third consecutive day. The S&P 500 fell 0.3 per cent to 5,503.41, while the Dow Jones dropped 0.54 per cent to 40,755.75. Conversely, the Nasdaq Composite edged up 0.25 per cent to 17,127.66.
Asian markets showed mixed performances with Japan’s Nikkei 225 rose 0.05 per cent to 36,674, while Korea’s KOSPI declined 0.95 per cent to 2,551, and the Asia Dow fell 0.53 per cent to 3,475.36. The Shanghai Composite in China increased 0.12 per cent to 2,792.
On Thursday, the domestic indices declined, influenced by selling pressure in select heavyweights and negative global cues. The Sensex decreased by 151.48 points, closing at 82,201.16, while the Nifty 50 fell by 53.60 points, or 0.21 per cent, to end at 25,145.10. (ANI)
