Indian Stock Market Opens Flat Amid Global Pressure; Sensex Gains 478 Points

Mumbai, November 4 (Daily Kiran) : The Indian stock market opened on a flat note on November 4, following four consecutive sessions of gains. Global cues were mixed amid pressure on IT stocks in Asian markets and rising concerns over spending on artificial intelligence (AI), impacting domestic trading.

Initially, the Sensex fell by 64.74 points, or 0.08 percent, starting at 76,853.11. The Nifty index also dipped, down 68.60 points, or 0.29 percent, opening at 23,742.25. However, as the day progressed, both benchmarks saw significant gains. At one point, the Sensex surged by 478.18 points, or 0.62 percent, reaching a high of 77,331.04. Similarly, the Nifty climbed by 135.5 points, or 0.56 percent, peaking at 23,846.35.

Sector-wise, market trends were mixed. The Nifty Consumer Durables, Nifty Realty, and Nifty IT indices recorded declines of up to 0.79 percent. Additionally, weakness was noted in metal, energy, private banks, and PSU bank stocks.

Conversely, healthcare and pharma stocks provided some support to the market. The Nifty 500 Healthcare, Nifty Healthcare Index, and Nifty Pharma indices rose by up to 0.23 percent, indicating sustained investor interest in these sectors.

Market experts suggest that a shift in the stance of foreign institutional investors (FIIs) has positively influenced investor sentiment. In five of the last six trading sessions, FIIs have been net buyers, acquiring shares worth ₹18,661 crore.

Analysts indicate that the persistent selling by FIIs over the past two years had put pressure on the market, but the situation appears to be changing. Strong corporate earnings and attractive valuations in large-cap stocks are providing fundamental support to the market. Furthermore, a slowdown in AI-themed global investments is aiding the return of foreign investors.

Experts believe that the current rally is primarily being led by large-cap companies, particularly in the financial sector, which still has room for growth. Short covering may also bolster the market.

From a technical perspective, the Nifty remains above its 50-day exponential moving average (EMA) of 23,196. The Relative Strength Index (RSI) stands at 66.59, indicating market strength, although profit-taking cannot be ruled out at this level.

According to market analysts, the nearest support for the Nifty is in the range of 23,500-23,600, while the major resistance zone is considered to be between 24,000-24,200. The 200-day EMA, situated around 23,904, may act as an intermediate barrier.

On Tuesday, FIIs recorded a net purchase of ₹6,836 crore, continuing their buying spree for the third consecutive session. In contrast, domestic institutional investors (DIIs) sold shares worth ₹3,678 crore for the third straight day.

Globally, U.S. markets closed higher on Tuesday, with the Nasdaq gaining strength as buying returned to major companies in the AI sector. However, Apple shares dipped following disappointing quarterly results.

Experts believe that ongoing FII purchases, strong corporate earnings, and the robustness of the domestic economy are supporting the market. Nonetheless, volatility may persist in the near term due to fluctuations in global tech stocks and the potential for profit-taking.