Indian Stock Markets Open Flat Amid Global Economic Concerns
Indian stock markets opened with a slight dip on Thursday due to weak economic data from the U.S. The Nifty 50 index fell by 52 points to 25,093.35, and the BSE Sensex dropped by 30 points to 82,171.64.
Experts predict further market volatility depending on upcoming U.S. payroll data. Ajay Bagga, a Banking and Market Expert, said, “US Monthly Payrolls data day is here. Another poor report will raise chances for a 50 bps cut on Sep 18th. A strong report will limit expectations to a 25 bps cut. US markets have been seeing outflows in the last two weeks and we expect this trend to continue as investors take a risk off stance going into Sep 18th. Indian markets will take their cues from these global developments. Expect volatility and weak markets. Positions will be kept light given the event risk this evening from the US Payrolls data.”
In the broad market on the National Stock Exchange, Nifty Next 50, Nifty 100, Nifty 200, and other major indices faced pressure during the opening session. In the sectoral indices, Nifty Bank, Nifty Auto, and Nifty FMCG faced selling pressure, while Nifty IT, Nifty Media, and Nifty Pharma gained.
Varun Aggarwal, MD of Profit Idea, commented, “The Nifty 50 formed a small negative candle on the daily chart. The previous downside gap from 4th September remains a significant resistance around 25,250 levels. This technical pattern suggests a lack of market strength to overcome this resistance, indicating potential further consolidation. The short-term trend for Nifty remains choppy with a bearish bias.”
In global markets, U.S. indices closed lower for the third consecutive day. The S&P 500 fell 0.3 per cent to 5,503.41, while the Dow Jones dropped 0.54 per cent to 40,755.75. Conversely, the Nasdaq Composite edged up 0.25 per cent to 17,127.66. Asian markets showed mixed performances with Japan’s Nikkei 225 rising 0.05 per cent to 36,674, while Korea’s KOSPI declined 0.95 per cent to 2,551, and the Asia Dow fell 0.53 per cent to 3,475.36. The Shanghai Composite in China increased 0.12 per cent to 2,792.
On Thursday, the domestic indices declined, influenced by selling pressure in select heavyweights and negative global cues. The Sensex decreased by 151.48 points, closing at 82,201.16, while the Nifty 50 fell by 53.60 points, or 0.21 per cent, to end at 25,145.10.
Doubts Revealed
Stock Markets -: Stock markets are places where people buy and sell shares of companies. In India, the main stock markets are the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Nifty 50 -: Nifty 50 is an index that shows the performance of 50 major companies listed on the National Stock Exchange (NSE) of India.
BSE Sensex -: BSE Sensex is an index that shows the performance of 30 major companies listed on the Bombay Stock Exchange (BSE) of India.
Global Economic Concerns -: Global economic concerns refer to worries about the economy of the whole world, like how countries are doing financially and how it affects trade and markets.
U.S. Payroll Data -: U.S. payroll data is information about the number of jobs added or lost in the United States. It helps understand how well the U.S. economy is doing.
Sectoral Indices -: Sectoral indices are groups of stocks from the same industry, like banks or IT companies. They show how that particular industry is performing in the stock market.
Nifty Bank -: Nifty Bank is an index that shows the performance of major banking companies listed on the NSE.
Nifty Auto -: Nifty Auto is an index that shows the performance of major automobile companies listed on the NSE.
Nifty IT -: Nifty IT is an index that shows the performance of major information technology companies listed on the NSE.
Nifty Pharma -: Nifty Pharma is an index that shows the performance of major pharmaceutical companies listed on the NSE.
Indices -: Indices are like scoreboards that show how well a group of stocks is doing in the stock market.
Volatility -: Volatility means how much and how quickly the prices of stocks go up and down. High volatility means prices change a lot in a short time.