Indian Markets Open Flat Amid ‘Trump Anticipation Trade’ Impact
On Thursday, Indian markets opened with a slight dip, continuing the selling pressure on major indices. The Nifty 50 index started at 23,542.15 points, down by 16.90 points or 0.07%, while the BSE Sensex opened at 77,636.94, a decrease of 54.01 points or 0.07%.
Market expert Ajay Bagga explained that the downward trend is due to downgrades in corporate earnings, higher inflation, and slower economic growth. Foreign Institutional Investor (FII) outflows are ongoing, and a market turnaround might not occur until February, coinciding with the inauguration of Donald Trump as President of the United States. The “Trump Anticipation Trade” is influencing the markets, with a strong US dollar and rising US Treasury yields contributing to the trend.
In the National Stock Exchange, most sectoral indices opened lower, except for Nifty Auto, Nifty Metal, and Nifty Realty. Nifty Consumer Durables experienced significant selling pressure. Companies like Hindustan Aeronautics, Hero Motocorp, Muthoot Finance, Bharat Forge, and Grasim Industries are set to announce their quarterly results today.
Akshay Chinchalkar from Axis Securities noted that the market is oversold, and bears will dominate unless the market surpasses the previous day’s high while maintaining support. The next downside zone is expected in the 23,200 – 23,300 range.
In other Asian markets, Japan’s Nikkei 225 and South Korea’s KOSPI indices saw slight increases, while Hong Kong’s Hang Seng and Taiwan’s weighted index declined.
Doubts Revealed
Flat Market -: When we say the market opened flat, it means there wasn’t much change in the prices of stocks compared to the previous day. It’s like when you wake up and your weight is the same as yesterday.
Nifty 50 -: Nifty 50 is a stock market index in India. It shows how the top 50 companies in the stock market are doing, like a report card for big companies.
BSE Sensex -: BSE Sensex is another stock market index in India. It tracks the performance of 30 well-established companies on the Bombay Stock Exchange.
Ajay Bagga -: Ajay Bagga is a market expert who knows a lot about how the stock market works. He gives advice and shares his opinions on market trends.
Corporate Earnings -: Corporate earnings refer to the profits that companies make. If companies earn less money, it can affect their stock prices.
Inflation -: Inflation is when the prices of things we buy, like food and clothes, go up. It means you need more money to buy the same things.
Economic Growth -: Economic growth is when a country’s economy gets bigger and better. It means more jobs, more money, and better living conditions for people.
Trump Anticipation Trade -: This term refers to how people in the stock market are reacting to what they think might happen because of decisions made by Donald Trump, the former US President.
US Treasury Yields -: US Treasury yields are the interest rates the US government pays to people who lend it money. When these rates go up, it can affect stock markets around the world.
Sectoral Indices -: Sectoral indices are groups of stocks from the same industry, like technology or healthcare. They show how that particular industry is doing in the stock market.
