MUMBAI: The domestic equity markets opened on a flat-to-positive note on Tuesday but soon slipped into negative territory, as hopes of a Santa rally remained muted so far. Benchmark indices started the session with marginal gains, tracking positive global cues, but selling pressure across the broader market weighed on sentiment.
The Nifty 50 index opened at 26,246.15, gaining 32.80 points, or 0.13 per cent, while the BSE Sensex began trade at 85,690.10, up 122.62 points, or 0.14 per cent. However, the early optimism faded quickly, with markets turning red as the session progressed.
Market participants noted that although Indian equities opened higher, sustained buying support was missing. Broader market indices on the NSE were largely under pressure, with almost all major indices trading in the red. The Nifty Smallcap index was the only exception, managing to stay in green, though gains remained marginal, indicating cautious investor sentiment across the market.
Banking and market expert Ajay Bagga said, “Indian markets are pointing to another gap-up open. Monday’s rise in Indian markets came despite a net outflow from FPIs, pointing to strong domestic flows continuing. This morning, Asian markets are up, taking the US cues. Santa has been late this year, but hopefully the last 4 days’ positive moves in the US markets will create momentum for a year-end catch-up”.
Foreign institutional investors (FIIs) remained net sellers in the cash market on Monday, selling equities worth Rs 457.3 crore. In contrast, strong domestic institutional investor (DII) buying of Rs 4,058.2 crore helped cushion the market and limit downside pressure.
Sectoral performance on the NSE showed a mixed trend. Nifty Metal surged by 0.49 per cent, while Nifty Pharma was marginally higher by 0.04 per cent. Nifty PSU Bank gained 0.31 per cent, and Nifty Financial Services rose by 0.25 per cent. In contrast, the Nifty IT index was under significant pressure, declining by more than 1 per cent, dragging overall market sentiment.
Global cues remained supportive but cautious. Historically, since 1928, the S&P 500 has risen an average of 4 per cent between October 28 and New Year’s Eve. However, this year, both the S&P 500 and the tech-heavy Nasdaq Composite have remained in negative territory during this period so far, reflecting uncertainty around a year-end rally.
US markets closed higher on Monday, brushing aside concerns over AI bubble discussions, lack of progress on Ukraine peace talks, and rising tensions with Venezuela. Asian markets largely followed the positive US cues. Japan’s Nikkei traded marginally higher, Hong Kong’s Hang Seng index gained 0.42 per cent, Taiwan’s weighted index rose 0.54 per cent, South Korea’s KOSPI advanced 0.43 per cent, and Singapore’s Straits Times index climbed 0.36 per cent.
Despite supportive global signals, Indian markets continue to face pressure, with investors closely watching whether the remaining days of the year can deliver a delayed Santa rally. (ANI)
