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Selling pressure returned to the Indian stock markets on Thursday as both benchmark indices opened in the red amid the absence of any fresh trigger, even as foreign investors continued to show positive interest in the markets.
The Nifty 50 index opened at 25,906.70, declining by 47.15 points or 0.18 per cent. The BSE Sensex opened at 83,968.43, down by 265.21 points or 0.31 per cent. VK Vijayakumar, Chief Investment Strategist, Geojit Investments said "Support to the market has to come from earnings growth, and there are sectors like automobiles, jewellery, hotels, segments of capital goods, telecom and financials that are doing well on the earnings front and have the potential to continue to do well. Even with occasional profit booking, the undertone of the market will remain resilient mainly because there is a trend of FIIs turning buyers". He further added, "The fact that FIIs were buyers in six of the last seven trading sessions, indicate that at least the trend of sustained selling is over. In the near-term the market is likely to consolidate around the current levels with an upward bias." In the broader markets on the NSE, the Nifty 100 slipped 0.33 per cent, while the Nifty Midcap 100 declined 0.45 per cent. The Nifty Smallcap 100 also fell 0.69 per cent, indicating weakness across segments. Among sectoral indices on the NSE, Nifty IT faced major pressure, falling more than 2 per cent. Nifty Auto declined 0.34 per cent, Nifty Metal lost 0.26 per cent, Nifty PSU Bank fell 0.54 per cent, and Nifty Realty dropped 0.66 per cent. Ponmudi R, CEO of Enrich Money said, "Indian equity markets are expected to trade flat to mildly positive in today's session. Optimism surrounding the India-US interim trade framework continues to underpin sentiment, while stability in the rupee has eased currency-related concerns and strengthened foreign investor confidence. FPIs have extended their buying streak, providing a meaningful liquidity cushion, and steady DII participation is helping limit sharp downside risks". In the commodities market, gold prices declined by 0.43 per cent to Rs 1,58,079 per 10 grams for 24 karat gold. Silver prices also fell by 0.77 per cent to Rs 2,61,000 per kilogram at the time of filing this report. As per fund flow data forWednesday, FIIs were net buyers at Rs 943.8 crore, while DIIs were net sellers at Rs 125.4 crore in the cash market. In other Asian markets on Thursday, Hong Kong's Hang Seng index declined 0.92 per cent to 27,016. However, other major indices traded in the green. Japan's Nikkei 225 rose 0.14 per cent to 57,744, Singapore's Straits Times gained 0.61 per cent to 5,015, and South Korea's markets surged 2.70 per cent to 5,498. Taiwan's market remained closed for a holiday. In the US markets on Wednesday, the S&P 500 closed almost flat at 6,941. The Nasdaq declined marginally by 0.11 per cent to 23,076 at closing, while the Dow Jones index ended on a flat note with a marginal fall of 0.13 per cent to 50,121. (ANI)
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