Indian stock markets opened flat on Wednesday, September 11, 2024, as investors weighed mixed global cues and awaited key U.S. inflation data.
The Sensex opened at 81,928.12, marginally higher than its previous close of 81,921.29, while the Nifty 50 index opened slightly lower at 25,034.00 compared to Tuesday’s close of 25,041.10.
“The market is expected to remain range-bound ahead of the crucial U.S. inflation data release,” said Vikas Jain, Head of Research at Reliance Securities. He added, “However, sector-specific and stock actions are likely to continue.”
Oil stocks were in focus as Brent crude futures dropped below $70 a barrel for the first time since December 2021. This decline could benefit sectors such as oil marketing, tyres, and cement due to reduced input costs.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, “The sharp dip in Brent crude to below $70 signals weakening demand globally, which in turn, indicates weakening growth prospects for the global economy.”
Among the top gainers on the NSE at 9:30 am were Bajaj Auto (1.43 per cent), Asian Paints (1.08 per cent), and Tata Consumer Products (0.88 per cent). On the other hand, Tata Motors (-4.05 per cent), ONGC (-1.88 per cent), and Hindalco (-0.73 per cent) were the top losers.
Foreign Institutional Investors (FIIs) continued their buying streak, purchasing equities worth Rs 2,208 crore on September 10, while Domestic Institutional Investors (DIIs) sold equities worth Rs 275 crore on the same day.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “We believe the market has completed one leg of the pullback rally, and now 25,000/81,800 is expected to be the crucial support level for traders.”
The INDIA VIX, which measures market volatility, was down by 6.16 per cent and trading at 13.36, indicating reduced market fear.
In the commodities market, gold gained 0.7 per cent to $2,510/ounce as traders eyed U.S. inflation data due later this week. Crude oil futures traded higher on Wednesday morning due to fears of supply disruptions from tropical storm Francine in the Gulf of Mexico.
As the market navigates through mixed signals, investors are advised to watch key sectors and await further economic data for clearer direction.