Indian stock markets opened flat on Wednesday amidst mixed action reflected in domestic investors and FIIs. Continuous selling by FIIs has been thus far matched by buying support from DIIs, leading to a balanced market.
On Wednesday, the Nifty 50 index opened at 24,371.45 points, down by 95.40 points or 0.39 percent. Its peer BSE Sensex opened at 80,237.85 points, down by 131.18 points or 0.16 percent.
Analysts foresee increased volatility across markets in the run-up to US election dates. This uncertainty reflects the lack of clear trends in the U.S. election so far. “With Nasdaq, Gold, and Bitcoin hitting new highs, investors face a confusing mix of assets. The U.S. Presidential Elections are delicately poised, and prediction markets, along with pollsters, find no clear trend,” said Ajay Bagga, a banking and market expert.
Bagga reiterated the need to stay with asset allocation and maintain a long-term view of one’s finances. He advocated investing in quality companies as a simplistic formula for success, albeit hardly adhered to by people. “Nobody knows about the short term. Things are clearer in the long term. Until then, nobody knows,” he concluded.
Only Nifty FMCG and Nifty Media bucked the trend and ended in the green among sectoral indices. Rest all opened lower. As many as 19 shares advanced, while 31 declined on the Nifty 50 index. Maruti Suzuki jumped close to 2 percent after falling over 3 percent on Tuesday. The top losers in the opening session on the NSE were the major pharma companies such as Cipla, Dr. Reddy’s, and Sun Pharma.
The market will also keenly await the second-quarter results of Larsen & Toubro, Tata Power, Dabur India, Aditya Birla Capital, and DCM Shriram which will announce quarterly results today. This is on top of adding to the anticipation in markets.
Analysts say the market may extend recovery, similar to the trend seen in Tuesday’s session. “Tuesday’s reversal higher in the Nifty after an opening slump could drive near-term recovery,” says Akshay Chinchalkar, Head of Research at Axis Securities. He said the Monday rally had formed a Japanese “bullish harami” candlestick pattern, confirmed by the recovery beyond last Friday’s high of 24,440 yesterdayIndeed, historical data shows that every time the Nifty drops at least 0.5 percent below its previous close and then recovers to settle at least 1 percent above that day’s low, the market often sees an extended advance in the following days.
ANI
