Mumbai, August 13: The Indian stock market opened with a mixed trend on Thursday amid global tensions. Investors are assessing strong domestic economic indicators alongside persistent investment flows. However, uncertainty surrounding crude oil prices is influencing market sentiment. Consequently, both the Sensex and Nifty traded within a limited range during the initial hours.
The 30-share BSE Sensex opened at 78,111.91, gaining 145.56 points or 0.18% from its previous close of 77,966.35. Meanwhile, the NSE Nifty 50 opened flat at 24,431.60, down 4.35 points from its last close of 24,435.95. Shortly after, both major indices recorded further declines.
As of the time of writing, the Sensex was trading around 77,775, down 180 points or 0.24%, while the Nifty 50 was at 24,340.20, reflecting a decrease of 95.75 points or 0.39%.
In the broader market, the Nifty Midcap index fell by 0.15%, while the Nifty Smallcap index saw an increase of 0.33%.
Sector-wise, the Nifty Media Index showed the most strength, rising by 0.61%. Following this, the Nifty Auto Index gained 0.39%, indicating a buying trend in automotive stocks.
Conversely, some major sectors sensitive to interest rates faced pressure. The Nifty Realty Index dropped by 0.81%, and the Nifty IT index weakened by 0.69%. Additionally, the PSU Bank, Oil & Gas, and Private Banking indices saw declines of up to 0.61%.
Among the Nifty 50 constituents, Grasim Industries, UltraTech Cement, and Hindalco Industries suffered the most losses.
Market experts believe that the Indian stock market may trade within a limited range in the near term. This is due to strong domestic economic fundamentals and continuous investments from domestic investors, while global risks keep investors on alert.
Analysts note that high-frequency economic indicators such as GST collections, freight movement, automobile sales, and bank loan growth reflect the economy’s strength. These indicators are expected to support corporate earnings in upcoming quarters.
However, high crude oil prices remain a significant concern for the market. Experts indicate that uncertainty regarding future oil prices is heightening investor caution, as it could impact inflation, import bills, and corporate costs.
Technical analysts suggest that the Nifty showed strength above the 20-day moving average during Wednesday’s trading and formed a hammer candlestick pattern on the chart, improving the near-term technical outlook.
They predict that based on recent price action, the Nifty could potentially rise to 24,540 to 24,666 points in the first phase. Following this, the market might advance towards 24,850 to 25,100 points. However, some profit booking and consolidation may occur around the 24,490 mark.
Meanwhile, there were also encouraging signals from the international oil market. Brent crude prices fell by over 1% to $87.75 per barrel, while U.S. WTI crude dropped by 1.64% to $81.90 per barrel. This easing in oil prices may alleviate some concerns regarding inflation and corporate costs.
Market experts believe that the direction of the Indian market will currently depend on domestic economic strength, corporate earnings, foreign and domestic investment flows, and crude oil prices. Strong macroeconomic indicators are supporting the market, while global factors are compelling investors to remain cautious.
Leave a Comment