The Indian stock market had a rocky start on Thursday as the Sensex and Nifty50 opened in the red, reflecting nervousness among investors. At 9:16 AM, the BSE Sensex was trading at 77,943.31, down 205 points, or 0.26%. Similarly, the Nifty50 slipped 57 points, or 0.24%, to settle at 23,632.40.
These numbers come after markets managed to recover from intraday losses on Tuesday but closed flat, showing signs of caution. Investors appear to be weighing reduced GDP growth forecasts and mixed global cues ahead of Q3 results. Rising US bond yields and concerns about fewer rate cuts by the US Federal Reserve are also making market participants uneasy.
What Experts Are Saying
Siddhartha Khemka, Head of Research at Motilal Oswal, mentioned that the markets could remain volatile for some time. “We’re seeing cautious behavior due to concerns around the new virus. Stock-specific action may dominate, especially with companies providing pre-quarterly updates and the Q3 results season starting soon,” he said.
Analyst Nagaraj Shetti from HDFC Securities highlighted key levels to watch for Nifty50. “Breaking above 23,800 could trigger an upward move. Support is visible at 23,496,” Shetti explained.
India’s volatility index, India VIX, dropped 1.33% to 14.46, signaling a bit of relief in terms of market tension. However, traders are still wary of external factors, including global market trends and economic data releases.
Sectors in Focus
While the broader market saw losses, some sectors showed resilience. Technology stocks gained slightly as global tech giants rallied on Wall Street. On the other hand, banking and auto sectors continued to face selling pressure, dampening market sentiment.
Metal stocks were mixed, reflecting a cautious outlook on industrial demand. Energy stocks were also subdued as oil prices hovered near $90 per barrel. The high prices are a result of supply shortages balanced against weaker global buying trends.
Global Factors in Play
On the international front, investors are keeping a close watch on US economic data and Federal Reserve signals. Wall Street, however, saw gains in Big Tech, which helped offset weak US manufacturing numbers. In Europe, Germany’s economy is grappling with its energy crisis, highlighting broader challenges for global growth.
Meanwhile, developments in China are adding another layer of complexity. Reports of missed payments by Chinese trust firms are sparking concerns among international investors.
What’s Next for Indian Markets?
Analysts are predicting that the market could continue its roller-coaster ride in the coming days. Much depends on Q3 results and global cues. Investors should also watch for updates related to the ongoing virus concerns and government policies aimed at stabilizing the economy.
A break above 23,800 on the Nifty50 could indicate that bulls are back in action. But with volatility expected to persist, traders might need to tread carefully.
For now, patience and stock-specific strategies could be the name of the game as the market navigates uncertain waters.
Stay tuned for more updates on MoneyPhobia.
