MUMBAI: Indian stock markets opened flat amid a buying and selling trend by domestic investors and Foreign Institutional Investors (FIIs). The continuous selling by FIIs and buying support from Domestic Institutional Investors (DIIs) have shifted markets into a balanced mode.
On Wednesday, the Nifty and Sensex opened with a marginal dip. The Nifty 50 index opened at 24,371.45 points, declining by 95.40 points or 0.39 per cent. Meanwhile, the BSE Sensex opened at 80,237.85 points, down by 131.18 points or 0.16 per cent.
Experts noted that volatility is increasing globally across all assets as the US election dates approach. Volatility is also high due to a lack of clear trends in the election so far.
“Nasdaq, gold and Bitcoin making new record highs makes for a confusing assortment of assets. The US Presidential Elections are poised delicately, with prediction markets and pollsters unable to determine a trend. Sticking to your asset allocation and focusing on your financial goals and staying invested for the long term, in quality companies, is a simple mantra for success. However, hardly anyone follows it. Nobody knows about the short term. Things are clearer for the long term. Till the long term, nobody knows”, Ajay Bagga, banking and market expert.
In the sectoral indices, except for Nifty FMCG and Nifty Media, all other indices opened with a decline. Among the Nifty 50 list, 19 shares opened in advance, while 31 stocks opened with a decline.
Maruti Suzuki shares gained around 2 percent at the opening after a decline of more than 3 percent on Tuesday. Shares of major pharma companies, including Cipla, Dr. Reddy’s, and Sun Pharma, emerged as top losers in the opening session on the NSE.
In quarterly announcements, some of the major companies, including Larsen & Toubro, Tata Power, Dabur India, Aditya Birla Capital, and DCM Shriram, are set to announce their second-quarter results today. Experts also noted that the recovery in markets may continue like the trend seen on Tuesday’s session.
“Tuesday’s reversal higher in the nifty after an opening slump has the potential to further the near-term recovery. There are two reasons why this may occur. One, Monday’s rally created a Japanese ‘bullish harami’ candlestick pattern, which got validated as yesterday’s recovery broke through the Friday high of 24,440. Two, historically, whenever the Nifty has fallen at least 0.5 per cent below its previous close and recovered to settle a minimum of 1 per cent above the same day’s low, the next few days have seen the market extend its advance”, said Akshay Chinchalkar, Head of Research, Axis Securities. (ANI)