Indian stock markets open flat amid global uncertainty, FPI outflows; Nifty at 24,850

MUMBAI: Indian stock markets opened flat on Wednesday amid mixed global cues, continued FPI outflows, and uncertainty around the US trade deal. The BSE Sensex opened marginally up at 81,594.52 and the Nifty 50 at National Stock Exchange (NSE) at 24,890.40.

In the opening hour, at NSE, L&T, Asian Paints, Axis Bank, Jio Financial, Bajaj Finance were among major gainers. On the other hand, losers were Tata Motors, SBI Life Insurance, ICICI Bank, and SBI. Among sectors, except auto, bank, and realty, all other indices are trading in the green.

The market’s sentiment looks impacted due to the no major sign of bilateral trade deal. Talking about the deal, US President Donald Trump said 20-25 per cent tariffs could be levied on India. According to the data, the Foreign Institutional Investor (FIIs) net sell was Rs 4,636.60 crore, while the Domestic Institutional Investor (DIIs) net buy was Rs 6,146.82 crore in equities on Tuesday.

Meanwhile, Asian markets are trading with caution amid the extension of the US tariff pause with China looks uncertain. Asian cues were mixed this morning, while US index futures are up.

“Indian markets will benefit from IMF raising India’s growth outlook, good results from some heavyweights while the newsflow that in the absence of a trade deal, the US may temporarily levy 20 per cent to 25 per cent tariffs on India is a dampener”, said Ajay Bagga, market and banking expert.

“The Nifty finished 140 points higher at 24,821 yesterday, offering some respite to tactical bulls. Technically speaking, yesterday’s low at 24600 occurred at the top end of a horizontal support area and the fact that the market traced a “bullish engulfing” pattern here is making bulls hopeful of an extended recovery toward 25000, at the very least”, said Akshay Chinchalkar, Head of Research, Axis Securities.

The July Fed decision is due later today, and consensus is toward rates remaining unchanged, added Chinchalkar. On Tuesday, stock markets edged higher, gaining over half a per cent in the trading session. According to the market analysts, buying in heavyweights like Reliance Industries, L&T, HDFC Bank, and Bharti Airtel lifted the stock markets today.

“Eyes are now on global cues, upcoming central bank commentary, and domestic earnings. Technically, a move above 24,800 could spark further upside, while 24,550 remains a key support”, said Vikram Kasat, head-advisory, PL Capital. (ANI)