Nifty and Sensex Open Flat Amid FII Selling and DII Buying Support
Indian stock indices Nifty and Sensex opened flat on Thursday due to selling by Foreign Institutional Investors (FIIs) and buying support from Domestic Institutional Investors (DIIs). The Nifty 50 index opened just above the 26,000 mark at 26,005 points, while the Sensex opened at 85,167 points, crossing the 85,000 mark.
According to market experts, the US elections may have a global impact on markets, but Indian markets remain strong due to buying sentiment from domestic investors and the robust economic outlook of the Indian economy. Ajay Bagga, a Banking and Market Expert, said, “The FIIs have been net sellers in the cash markets for the last two days. Domestic flows are more than adequate to counter this. We had positive comments from global analysts at JP Morgan and Morgan Stanley on the attractiveness of the Indian markets for long term global investors. We once more reiterate that it is a decadal bull market that we are witnessing in India, backed by a strong combination of robust pro-growth policies.”
He further added on the US elections effect on stock markets that “US markets took a small breather though Nasdaq continued its march onwards on Wednesday. The impact of the US Presidential Elections of November 5th will lead to less flows into the US markets. Historically, US markets tend to weaken going into the Elections and then rally once the results are declared. This time, given the close contest, clarity on the winner could take a few days and this will be disruptive.”
In the sectoral indices of National Stock Exchange, Nifty Bank and Nifty Auto faced selling pressure, with both indices opening with a marginal dip. However, most sectoral indices remained flat, with a maximum marginal gain of 0.2 per cent in the opening session. In the Nifty 50 stock list, 34 shares opened with gains, 12 opened in decline, and 4 remained unchanged.
Meanwhile, Asian markets rallied on Thursday, driven by a weakening Yen and the impact of the Chinese stimulus, which boosted Japanese and Chinese markets, providing support to commodities. Japan’s Nikkei index surged by more than 2 per cent, Hong Kong’s Hang Seng index rose by 1.81 per cent, and South Korea’s KOSPI index gained more than 2 per cent. Taiwan’s markets were also up by 0.8 per cent at the time of filing this report.
Doubts Revealed
Nifty -: Nifty is a stock market index in India that shows how the top 50 companies are performing.
Sensex -: Sensex is another stock market index in India that tracks the performance of 30 well-established companies.
FII -: FII stands for Foreign Institutional Investors. These are people or companies from other countries who invest in Indian markets.
DII -: DII stands for Domestic Institutional Investors. These are Indian companies or organizations that invest in the Indian stock market.
Flat -: When the market opens ‘flat,’ it means there is very little change in the stock prices compared to the previous day.
Ajay Bagga -: Ajay Bagga is a market expert who knows a lot about how the stock market works and shares his insights.
US elections -: US elections are when people in the United States vote to choose their leaders, like the President. This can affect markets worldwide.
Sectoral indices -: Sectoral indices are parts of the stock market that show how specific sectors, like banking or auto, are performing.
Nifty Bank -: Nifty Bank is a part of the Nifty index that shows how well the banking sector is doing.
Nifty Auto -: Nifty Auto is a part of the Nifty index that shows how well the automobile sector is doing.
Asian markets -: Asian markets refer to stock markets in Asian countries like Japan, China, and India.
Yen -: Yen is the currency used in Japan.
Chinese stimulus -: Chinese stimulus refers to actions taken by the Chinese government to boost their economy, like spending more money on projects.