The Indian stock market opened on a tepid note Thursday, with the Nifty 50 index starting at 25,035.30, slightly lower than its previous close of 25,052.35. The Sensex also opened marginally higher at 81,822.56, compared to Wednesday’s close of 81,785.56.
Global cues weighed on investor sentiment, as US markets closed lower on Wednesday, particularly due to weakness in the tech sector. The disappointment stemming from Nvidia’s revenue forecast, which fell short of the highest analyst estimates, contributed to the cautious mood.
“The Nifty is expected to face choppy waters ahead, with uncertainty in market direction,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd. He added, “The downturn in US tech stocks, particularly Nvidia’s recent decline despite strong earnings, has contributed to this caution.”
Despite the muted opening, certain sectors showed strength. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “...the IT and pharma indices outperformed, both gaining over 1 per cent, while the media index declined by over 1.50 per cent.”
As of 9:45 am, the top gainers on the NSE included Bajaj Finserv (+1.32%), Bajaj Auto (+1.13%), Cipla (+1.00%), Shriram Finance (+0.75%), and Eicher Motors (+0.67%). Conversely, the top losers were Hindalco (-1.11%), Grasim (-1.05%), UltraTech Cement (-0.87%), LTI Mindtree (-0.78%), and Dr. Reddy’s (-0.76%).
Market analysts suggest a cautious approach. Vikas Jain, Head of Research at Reliance Securities, stated, “...expect stock-specific movements to persist, with traders likely adopting a buy-on-dips strategy.”
Investors are closely watching several key events, including the Reliance Industries AGM and the release of US economic data. Hardik Matalia, Derivative Analyst at Choice Broking, commented, “...if the index sustains above 25,150, it could push the market towards the 25,300 to 25,500 range.”
In the commodities market, both gold and crude oil experienced pressure. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, explained, “Gold and silver prices declined as the dollar index rebounded ahead of the release of U.S. core PCE data, with profit-taking in crude oil adding further pressure.”
As the day progresses, market participants will be keenly observing global cues, domestic economic indicators, and corporate developments to gauge the market’s direction. The ongoing August series F&O expiry is also expected to contribute to intraday volatility.