Nifty, Sensex open flat amid cautious sentiment ahead of rate cut decisions in 16 central banks globally

NEW DELHI: Indian stock markets opened almost flat in green on Monday as investors remained cautious ahead of several key monetary policy decisions scheduled this week by global central banks.

The Nifty 50 index opened at 25,118.90, registering a marginal gain of 4.90 points or 0.02 per cent. The BSE Sensex also moved slightly higher, opening at 81,925.51 with a gain of 20.81 points or 0.03 per cent.

Market experts noted that this week is crucial as 16 central banks are lined up for policy meetings, including the US Federal Reserve.

Ajay Bagga, banking and market expert, told ANI, “Very heavy week for monetary policy actions, with 16 central banks meeting in an environment of geopolitical tensions and policy chaos along with street protests from Indonesia to Nepal to UK. The US Fed meeting will be the central point of the week and markets could fall in reaction to an overly pessimistic outlook on the US labour market. Indian markets are waiting for the Fed rate cut which should lead to a softer US dollar and also increased EM flows. GST, Trump Truce talks and Fed rate action are the key drivers for the Indian markets. This week will see volatility with some selling post the Fed rate action.”

Broader market indices on the NSE also reflected a mixed trend. The Nifty 100 slipped 0.02 per cent in the red, while Nifty Midcap 100 and Nifty Smallcap 100 gained marginally in the opening session.

Sectoral indices showed divergence as well. Nifty IT was down 0.63 per cent, while Nifty Pharma lost 0.83 per cent. On the other hand, Nifty Auto gained 0.36 per cent, Nifty FMCG was flat in green, Nifty Metal advanced 0.26 per cent, Nifty Realty surged 0.51 per cent, and Nifty Oil and Gas inched up 0.05 per cent.

Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, said, “Globally, a 25bps Fed rate cut is widely expected following weak US jobs data. Overall, the near-term market outlook remains constructive, albeit with potential volatility around central bank events, while progress in India-US trade negotiations could provide an additional boost to investor confidence.”

Among Nifty 50 constituents, the top gainers in the opening session included Eternal (Zomato), Hero MotoCorp, Bajaj Auto, and Bajaj Finance. The laggards were Dr. Reddy’s Laboratories, Infosys, Sun Pharma, and HDFC Life.

From a technical perspective, Sunil Gurjar, SEBI-registered analyst and Founder, Alphamojo Financial Services, noted, “Following a previous week of back-to-back bullish candles, this indicates buyer interest, potentially pushing prices higher. The current price is hovering near a key resistance level.

A breakout above this resistance would signal a continuation of the uptrend. The 25,200 level is acting as strong resistance. Technically, the price is trading above all key moving averages, which points to more upward momentum.”

In other Asian markets, Japan’s Nikkei 225 index opened with a gain of 0.88 per cent. South Korea’s Kospi index also surged 0.52 per cent, while

Taiwan’s Weighted Index slipped 0.33 per cent. Hong Kong’s Hang Seng gained 0.47 per cent, whereas Singapore’s Straits Times was down 0.03 per cent in a flat opening. (ANI)