MUMBAI: The stock market witnessed a mixed opening on Tuesday after a robust start on Monday. The benchmark indices, Sensex and Nifty, showed early signs of volatility with negative numbers in the initial trading hours. The Sensex opened at 73,225.54, marking a decline of 102.40 points from the previous closing, while the Nifty opened 18.30 points lower at 22,079.15.
This negative trend in the opening was reflected in the market breadth, with 22 advances and 28 declines among the Nifty companies. In the list of top gainers among the Nifty firms were ONGC, Bharti Airtel, Tata Motors, Bajaj Finance, and Maruti. On the flip side, HCL Technologies, Wipro, Tech Mahindra, LTI Mindtree, and Divi’s Lab were the top losers in the early trading session.
The Gift Nifty indicated a subdued start for the Indian benchmark index, trading around 22,093.50, slightly below the Nifty futures’ previous close of 22,140. Despite the cautious outlook due to weak global cues, Indian stock market indices reached record highs, with the Nifty 50 surpassing 22,000 levels after a decisive upside breakout.
On Monday, the Sensex rose by 759.49 points (1.05 per cent) to close at 73,327.94, and the Nifty 50 ended 202.90 points (0.93 per cent) higher at 22,097.45. The Nifty 50’s daily chart shows a positive candle with a gap-up opening, confirming a sharp upside breakout. The short-term trend remains positive, with the next potential upside levels at 22,200-22,300.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Maintaining momentum, the Nifty bulls propelled the index beyond the 22,000 mark. The major support rests at 21,800, and breaching this level would be crucial to negate the prevailing trend. Immediate upside targets are at 22,200/22,300, and sustaining above these levels could push the index towards 22,500”.
In the global market scenario, Asian equities declined in response to European stock and bond declines. European Central Bank officials tempered rapid rate cut expectations. Oil prices held steady after a Monday retreat, with West Texas Intermediate just below $73 a barrel and Brent crude above $78.
India’s Wholesale Price Index (WPI) grew by 0.7 per cent YoY in December but declined by 0.9 per cent sequentially. Broad-based moderation across primary, fuel, and manufactured products is expected to support retail inflation. Exports increased by 1 per cent to $38.45 billion in December 2023, while imports declined by 4.85 per cent to $58.25 billion. Computer software and services exports, including IT-enabled services and BPO, grew by 12.2 per cent during 2022-23 to reach USD 193 billion.
The US Dollar Index (DXY) traded up by 0.22 per cent at 102.63, reflecting the dollar’s strength against a basket of six foreign currencies. Overall, the financial landscape indicates positive momentum in the Indian stock market, coupled with global market dynamics and trade performance. The ongoing trends and global economic indicators will likely shape market sentiment in the coming sessions. (ANI)