Indian equity markets opened lower on Friday, September 6, 2024, as investors remained cautious ahead of crucial US payroll data that could influence the Federal Reserve’s interest rate decisions. Sensex plunged 835.78 pts or 1.02% to trade at 81,365.38, as at 10.12 am, and Nifty 50 dropped 217.25 pts or 0.86% to 24,927.85.
Global market uncertainty and mixed Asian cues contributed to the subdued opening. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, noted, “The stock market’s catalysts are shifting rapidly, catching investors by surprise. Optimism over cooling US inflation has quickly turned to concerns about a slowing US economy.”
Vikram Kasat, Head - Advisory at PL Capital - Prabhudas Lilladher, warned, “Markets are on edge with jitters ahead of a busy macro calendar in the coming weeks, including the jobs report, next week’s inflation data, and the Federal Reserve’s interest-rate decision on September 18.”
The GIFT Nifty, an early indicator of India’s Nifty50 index performance, was down 60 points, signalling a negative start for domestic indices. Foreign Institutional Investors (FIIs) turned net sellers on September 5, offloading equities worth Rs 688 crore, while Domestic Institutional Investors (DIIs) bought equities worth Rs 2,970 crore.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, identified key support and resistance levels: “On the downside, 25100-25000 would be the key support zone. A close below this could send the market to 24800 or 24600 levels. On the other hand, 25275 would be the crucial resistance level for bulls.”
In sectoral movements, consumer and media stocks showed intraday buying interest, while realty and auto stocks experienced profit booking. The India VIX, which measures market volatility, was trading at 14.2075, down 1.18 per cent from the previous day.
As of 9:30 am, the top gainers on the NSE were LTIMindtree (2.45 per cent), Bajaj Finance (1.85 per cent), Bajaj Finserv (1.45 per cent), Wipro (0.89 per cent), and TCS (0.86 per cent). The top losers included SBI (-1.22 per cent), Coal India (-1.07 per cent), Ultratech Cement (-0.61 per cent), ONGC (-0.50 per cent), and NTPC (-0.43 per cent).
Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, commented on the broader market sentiment: “The index is anticipated to commence the trading session with mild selling pressure, however, sustenance above 25070 will allow the index to continue to attract bullish strength.”
Investors are closely watching the US jobs report due later today, which could provide insights into the Federal Reserve’s future monetary policy decisions. The Indian markets are expected to remain range-bound as they navigate global uncertainties and await further economic cues.