Indian stock markets opened flat on Tuesday, October 15, 2024, as investors weighed positive global cues against domestic inflation concerns. The benchmark Sensex opened at 82,101.86, slightly higher than its previous close of 81,973.05, while the Nifty50 started the day at 25,186.30, up from Monday’s close of 25,127.95.

As of 9:30 am, the market showed mixed trends across sectors. BPCL led the gainers on the NSE, up 2.10 per cent, followed by Bharti Airtel (1.57 per cent), Infosys (1.36 per cent), HCL Tech (1.27 per cent), and Asian Paints (1.18 per cent). On the flip side, ONGC was the top loser, down 1.52 per cent, with Tata Steel (-1.19 per cent), Hindalco (-1 per cent), JSW Steel (-0.72 per cent), and Nestle India (-0.69 per cent) rounding out the top five decliners.

The flat opening comes after Monday’s strong performance, which saw the Nifty close above 25,100 for the first time in seven sessions. Deepak Jasani, Head of Retail Research at HDFC Securities, commented, “Nifty rebounded from Friday’s losses and ended on a strong note with Nifty above 25,100 on October 14. It seems to have made a higher bottom in the short term and is attempting an upside breakout.”

However, the market sentiment is tempered by recent inflation data. Retail inflation in India rose to a nine-month high of 5.49 per cent in September, up from 3.65 per cent in August, primarily due to rising food prices. This increase surpassed economists’ expectations and could influence the Reserve Bank of India’s monetary policy decisions.

Global markets provided a mixed backdrop for Indian equities. U.S. stocks hit fresh all-time highs on Monday, with the Dow Jones Industrial Average and the S&P 500 logging record closing highs. Asian markets showed a largely positive trend, with Japan’s Nikkei share average hitting a three-month high.

The IT sector is in focus following strong Q2 results from HCL Tech. Vikas Jain, Head of Research at Reliance Securities, noted, “HCL Tech reported better than expected Q2 EBIT and EBIT margin. Focus on IT, realty, defense and exchange related stocks.”

Telecom stocks are also attracting attention after Reliance Industries reported strong Q2 results in its telecom division. Mandar Bhojane, Technical analyst at Choice Broking, stated, “If Nifty sustains above 25,500, it could extend its rally towards the 26,000–26,200 range.”

In the commodities market, oil prices continued their downward trend. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, explained, “Crude oil extended its decline amid a downbeat demand outlook from OPEC+ and weak Chinese economic data. OPEC+ has once again lowered its crude oil demand forecast for 2024 and 2025, citing reduced Chinese imports as a key factor.”

The day’s big event is the launch of Hyundai Motor’s IPO, valued at Rs. 28,780 crore, marking the largest IPO in India’s history. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, commented, “This marks the first automaker IPO in two decades since Maruti Suzuki’s 2003 listing. Hyundai, with the second-largest market share in India’s passenger vehicle segment and ranking fourth globally, is poised for success.”

As the market navigates these various factors, Shrikant Chouhan, Head of Equity Research at Kotak Securities, advised, “The strategy should be to reduce long positions at each resistance level and consider taking a trending long trade upon surpassing the 25300 level.”

Investors and traders are advised to remain cautious and monitor global cues, corporate earnings, and macroeconomic data for further market direction.

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