Indian stocks open flat amid global tech selloff, markets to follow global trends: Experts

MUMBAI: Volatility gripped the Indian stock markets on Wednesday as both benchmark indices opened flat, reflecting cautious investor sentiment amid weak global cues. The Nifty 50 index opened in the green at 25,918.10, rising 8.05 points (0.03 per cent), while the BSE Sensex began the session in the red at 84,643.78, down 29.24 points or 0.03 per cent.

Experts noted that with the earnings season now complete, markets will look for direction from global trends and the possibility of a pre-Budget rally over the next ten weeks leading up to the Union Budget 2026 on February 1.

Market expert Ajay Bagga said that Indian equities once again “flattered to deceive” during Tuesday’s weekly expiry, which typically witnesses sharp swings. “Opening down, Indian stocks went up for most of the day before giving up most gains by the end of the day”. he said.

Bagga added that although Asian indices recovered on Wednesday with limited selling outside AI-related names, overall market sentiment continues to remain weak. He further explained that pre-Budget consultations are under way, with various sectors presenting their demands to the Finance Ministry. However, lower-than-expected revenue realisation remains a concern.

While the government has extended income tax and GST rebates to stimulate consumption, the absence of broad-based wage growth is restricting economic momentum. Bagga also pointed out that following the government’s strong political mandate in the Bihar elections, there is room to push forward reforms aimed at accelerating economic growth.

He highlighted that the recent Swiss deal with the US, lowering tariffs on Swiss goods from 39 per cent to 15 per cent, has raised expectations of progress on an India-US trade agreement. India placing a large LPG purchase order with the US is also being viewed positively.

In broader market indices on the NSE, Nifty 100 gained 0.04 per cent, Nifty Midcap 100 rose 0.02 per cent, and Nifty Smallcap 100 was up 0.02 per cent. Among sectoral indices, all opened in the green except Nifty FMCG and Nifty Realty. Nifty IT gained 0.24 per cent, Nifty Pharma rose 0.18 per cent, Nifty Auto added 0.06 per cent, and Nifty PSU Bank inched up 0.07 per cent.

In the IPO market, Tenneco Clean Air India is set to debut on the exchanges on Wednesday at an issue price of Rs 397 per share, after its public issue was subscribed 58.83 times.

Globally, AI-linked risk-off sentiment remained strong. US markets closed lower on Tuesday, with technology stocks facing significant pressure. Bitcoin briefly fell below $90,000, marking a 30 per cent drop from its October highs and turning negative for the year. Asian markets too witnessed selling in technology and AI stocks early Wednesday. (ANI)