Indian stock markets opened the week with slender gains after both the Nifty 50 and Sensex indices shed close to 2.5 percent each last week. The Nifty 50 opened at 24,251.10 points, up by 70.30 points or 0.29 percent. The BSE Sensex opened at 79,653.67 points, up by 251.38 points or 0.32 percent.
Experts said continued volatility in the markets was likely as the selling pressure from foreign institutional investors remained very high. The FIIs have net sold ₹ 102,000 crores in the Indian secondary markets and have invested ₹ 17,000 crores in the primary markets as of this month. “The Indian markets are still in the grip of the FII-selling-induced fall,” Ajay Bagga, banking, and market expert, said. This is also the worst monthly outflow by FIIs in absolute terms. Adding further, Bagga said this week being the monthly expiry week, investors should expect even more volatility.
Upcoming US Elections on November 5 also contribute to building market uncertainty. Bagga was keen to point out, “The elections are too close to call. And as in 2020, the winning margin will boil down to a few thousand votes in the swing states.” A situation like this will continue to see uncertainty until the final results are declared.
Sectoral indices opened in the green on the National Stock Exchange, except for Nifty IT which fell 0.6 percent. On the contrary, Nifty Financial Services was the biggest gainer as it rose 0.6 percent. Among the Nifty 50 pack, the top gainer was ICICI Bank which surged as the lender reported strong quarterly earnings on Thursday. JSW Steel meanwhile opened as the top loser in the index.
Companies that will announce their second-quarter earnings include Bharti Airtel, Sun Pharma, Adani Power, Suzlon Energy, Ambuja Cements, Punjab National Bank, and JSW Infra. The market trend could be influenced by these results depending upon how investors take these important companies’ performance.
Elsewhere in Asia, the Japanese Nikkei index was upbeat at 1.43 percent. While the Hang Seng of Hong Kong and the Weighted of Taiwan inched down. The South Korean KOSPI index was up 0.86 percent, reflecting mixed sentiments in the entire region.
Overall, though Indian markets are opening the week on a strong note. Experts believe that investors would wait and watch as FII selling and uncertainty over US presidential elections may create volatile conditions ahead.
ANI
