Indian stock markets opened flat on Tuesday, reflecting cautious investor sentiment amid mixed global cues and recent comments from Federal Reserve Chair Jerome Powell.
The benchmark Sensex opened at 84,257.17, marginally lower than its previous close of 84,299.78, while the Nifty50 began trading at 25,788.45, down from Monday’s close of 25,810.85.
Tech stocks led early gains, with Tech Mahindra surging 3.29 per cent to top the gainers’ list on the National Stock Exchange (NSE). Other notable gainers included Mahindra & Mahindra (1.08 per cent), Larsen & Toubro (0.93 per cent), Power Grid (0.86 per cent), and State Bank of India (0.81 per cent).
On the losing side, JSW Steel dropped 1.25 per cent, followed by Asian Paints (-1.09 per cent), Hindalco (-1.08 per cent), Maruti (-0.73 per cent), and Titan (-0.52 per cent).
The IT sector showed strength, with Tech Mahindra leading the pack, up 3.47 per cent. Other IT gainers included Infosys (0.98 per cent), Wipro (0.74 per cent), Mphasis (0.61 per cent), and Coforge (0.61 per cent).
Market analysts attribute the cautious opening to recent comments by Fed Chair Powell and ongoing geopolitical tensions. Deepak Jasani, Head of Retail Research at HDFC Securities, stated, “U.S. stocks closed higher on Monday, reclaiming earlier losses that came after Federal Reserve Chair Jerome Powell’s comments at a conference Monday, which were viewed as disappointing to investors looking for aggressive interest-rate cuts from the central bank’s final two meetings this year.”
The markets are also reacting to domestic economic data. Jasani noted, “The Union government’s fiscal deficit expanded to 27 per cent of the budgetary target at the end of the first five months for the financial year ending March 2025.”
Global markets presented a mixed picture. Ameya Ranadive, Sr Technical Analyst at StoxBox, commented, “Asian stocks were mixed this morning, with Chinese and Hong Kong markets closed for holidays. Japan’s Nikkei rallied nearly 1.5 per cent after falling 4.8 per cent on Monday.”
Oil prices remained steady, with December Brent oil futures trading at $71.81, up by 0.15 per cent, and November crude oil futures on WTI at $68.29, up by 0.18 per cent. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, explained, “Crude oil exhibited significant volatility, closing on a mixed note. Prices are facing downward pressure due to concerns over a potential production increase by OPEC+ from December, along with the resumption of Libyan output following the resolution of internal disputes.”
In the precious metals market, gold and silver continued their decline. Kalantri stated, “Gold and silver continued to decline, driven by a rebound in the dollar index and routine profit-taking. Despite the overall uptrend in both metals, market participants are booking profits at higher levels.”
Looking ahead, Shrikant Chouhan, Head Equity Research at Kotak Securities, advised, “It is recommended to create long positions between 52600-52400 levels.” He added, “The recommended strategy is to consider a contra bet by going long if the indices form a reversal formation after reaching the levels of 25700/84000.”
Investors are closely watching for upcoming economic data releases. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “The near-term direction hinges on Friday’s US non-farm payrolls data, along with GST and auto sales figures for September due on October 1st.”
As the trading day progresses, market participants remain vigilant, balancing global cues, domestic economic indicators, and sector-specific developments in their investment decisions.