Indian Stock Market Opens Flat: Nifty 50 and Sensex Show Mixed Results
The Indian equity market had a mixed start today. The NSE Nifty 50 opened slightly lower by 7.10 points at 25,034, while the BSE Sensex edged up by 6.83 points to 81,928.12. On Tuesday, the Nifty 50 closed positively, surpassing the 25,000 mark.
Top Gainers and Losers
At the National Stock Exchange (NSE), the top gainers in the early hours were Asian Paints, Bajaj Auto, Tata Consumer, Bharat Petroleum Corporation Ltd., and Sun Pharma. On the other hand, Tata Motors, ONGC, Hero Motocorp, Hindalco, and HDFC Life Insurance were among the laggards.
Sectoral Indices
Among the sectoral indices, FMCG, Pharma, PSU Banks, and Healthcare stocks opened in green, while all other sectoral indices were in the red.
Global Market Trends
Globally, US stocks rallied for two consecutive days after a three-week slump. However, US banks saw a sell-off as JPMorgan warned that earnings estimates for the next year were too optimistic. JPMorgan’s shares dropped by 5.2%, marking their biggest daily decline since April. Goldman Sachs and Citigroup also experienced sell-offs.
Ajay Bagga, a market and banking expert, commented, “US CPI data out on Wednesday morning US time will probably show a month-on-month growth of 0.2% for both the headline and core data and an annual core number of 3.2%. Anything below that will enthuse markets for a bigger rate cut on Sep 18th but we stay in the 0.25% rate cut expectation camp.”
He added, “Asian markets are down today, falling after a senior Bank of Japan (BOJ) official’s comments that BOJ expects to increase Japanese rates further this year. With the Yen rallying, carry trade unwinding comes center stage again. Indian stock futures are muted and we could see some two-way moves again today, but the trend remains positive.”
Bagga also noted, “Oil’s continuing fall is pointing to more economic distress in China and Europe than is being factored in so far. Cautious optimism for now, and hoping for no risk-off selling on Sep 16th in anticipation of the Fed event.”
Investor Activity
Foreign institutional investors (FIIs) net purchased shares worth Rs 2,208.23 crore, while domestic institutional investors (DIIs) net sold shares worth Rs 275.37 crore on September 10, 2024, according to provisional NSE data.
Asian and US Market Performance
Asian markets were lower on Wednesday, with Japan’s Nikkei 225 down 0.55% to 35,962 and South Korea’s Kospi falling 0.34% to 2,514.85. The Asia Dow dropped 0.17% to 3,453.54, and China’s Shanghai Composite decreased 0.67% to 2,725.78.
US markets closed mixed on Tuesday. The S&P 500 gained 0.45% to 5,495.52, and the Nasdaq Composite rose 0.84% to 17,025.88, while the Dow Jones Industrial Average fell 0.23% to 40,736.96.
Doubts Revealed
Nifty 50 -: Nifty 50 is a stock market index in India that shows the performance of 50 major companies listed on the National Stock Exchange (NSE).
Sensex -: Sensex is another stock market index in India that tracks the performance of 30 well-established companies listed on the Bombay Stock Exchange (BSE).
NSE -: NSE stands for National Stock Exchange, which is one of the largest stock exchanges in India where people buy and sell shares of companies.
BSE -: BSE stands for Bombay Stock Exchange, which is another major stock exchange in India where shares of companies are traded.
Asian Paints -: Asian Paints is a big company in India that makes and sells paints and coatings for homes and industries.
Bajaj Auto -: Bajaj Auto is a well-known Indian company that manufactures motorcycles, scooters, and auto-rickshaws.
Tata Motors -: Tata Motors is a large Indian company that makes cars, trucks, and buses.
ONGC -: ONGC stands for Oil and Natural Gas Corporation, which is an Indian company involved in exploring and producing oil and natural gas.
FMCG -: FMCG stands for Fast-Moving Consumer Goods, which are products that sell quickly, like food, drinks, and toiletries.
Pharma -: Pharma refers to the pharmaceutical industry, which makes medicines and drugs to treat illnesses.
PSU Banks -: PSU Banks are Public Sector Undertaking Banks, which are banks owned by the government of India.
Healthcare -: Healthcare refers to the industry that provides medical services, makes medical equipment, and develops medicines.
FIIs -: FIIs stands for Foreign Institutional Investors, which are investors from other countries who invest money in Indian stocks.
DIIs -: DIIs stands for Domestic Institutional Investors, which are investors within India, like mutual funds and insurance companies, that invest in Indian stocks.
Rs -: Rs stands for Rupees, which is the currency used in India.
