Markets opened with mixed sentiment on Tuesday, December 3, 2024, reflecting a delicate balance between economic challenges and potential policy interventions.
The Sensex opened higher at 80,529.20 from its previous close of 80,248.08 and is currently trading at 80,380.63 as of 9.45 a.m, up by 132.55 points or 0.17 per cent.
Similarly, the Nifty opened at 24,367.50 compared to its previous close of 24,276.05 and is now at 24,314.70, gaining 38.65 points or 0.16 per cent.
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The market’s early movement comes in the backdrop of disappointing GDP growth figures released over the weekend, which initially dampened investor sentiment.
However, market experts suggest that the weak economic data has already been priced in, with investors now focusing on the upcoming Reserve Bank of India’s Monetary Policy Committee meeting on December 6.
“The underlying resilience of the market is evident in its ability to bounce back,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
“The market is focusing not on the GDP growth slowdown but on the likely policy response to this slowdown.”
Sector-wise performance showed a mixed trend. Adani Ports led the gainers on the NSE with a 2.73 per cent surge, followed by Shriram Finance at 2.29 per cent, State Bank of India at 1.35 per cent, HDFC Bank at 1.16 per cent, and JSW Steel at 1.09 per cent.
Conversely, ITC emerged as the top loser, dropping 2.68 per cent, accompanied by Bharti Airtel (-1.10 per cent), Sun Pharma (-1.04 per cent), Trent (-1.00 per cent), and Mahindra & Mahindra (-0.85 per cent).
The market’s attention is firmly fixed on the upcoming RBI policy, with expectations of a status quo on rate cuts due to persistent inflationary pressures.
“Traders are now focusing on the Reserve Bank of India’s upcoming monetary policy decision and potential rate action,” noted Gaurav Garg from Lemonn Markets Desk.
Technical analysts are closely watching key resistance and support levels.
“The Nifty 50 encounters immediate resistance near 24,350,” explained Ameya Ranadive, Senior Technical Analyst at StoxBox.
“Overcoming this barrier will facilitate further bullish momentum.”
Institutional investor activities continue to play a crucial role in market dynamics. On December 2nd, Foreign Institutional Investors (FIIs) were net sellers of equities worth ₹238 crore, while Domestic Institutional Investors (DIIs) stepped in with substantial net buying of over ₹3,588 crore.
Global market cues are also influencing the Indian market. With the S&P 500 and Nasdaq Composite closing at all-time highs and Asian stocks showing positive momentum, particularly in the tech sector, investors remain cautiously optimistic.
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“Considering the global market cues, the Indian benchmarks will likely have a muted start,” noted Ameya Ranadive. Traders are advised to maintain a cautious stance and wait for confirmation of price action at key support and resistance levels before initiating fresh positions.
Corporate developments are also catching investor attention. Solar Industries India, for instance, received export orders worth ₹2,039 crore for defence product supply, while Ultratech Cement saw a 3 per cent surge following an announcement of capacity expansion at its Kukurdih unit.
As the market navigates through economic uncertainties, investors and traders remain vigilant, closely monitoring the RBI’s upcoming policy decision, global market trends, and individual stock performances.