The Indian stock markets opened flat on Thursday, with both the major indices showing a slight dip amidst continued selling pressure volatility.
The Nifty 50 index opened at 23,542.15 points, down by 16.90 points or 0.07%. Similarly, the BSE Sensex opened at 77,636.94 points, losing 54.01 points or 0.07%.
Analysts also believe that the markets may remain volatile until February. The prevailing tendency of volatility is on account of an “ongoing ” Trump Anticipation Trade. According to observers of the market, the trend will reverse once Donald Trump assumes office.
Ajay Bagga, a banking and market expert, explained, “Indian markets are in a downtrend due to many reasons: the downgrading of corporate earnings estimates, higher than estimated inflation, and economic growth lower than estimated. And, FII outflows remain unabated without a break. Yet, there is an indication that ‘we are halfway through this correction.’ But, the reversal can take till February due to the seasonality of markets and Trump’s Inauguration. Investors should be ready. Turnaround will come.”
Bagga also said that the “Trump Anticipation Trade” is gaining significant traction. He further said, “Every new appointment of a China hawk under Trump is adding fuel to this trade. Stronger US dollar, higher US Treasury yields, and rising outflows from emerging markets are all direct effects of this trend.”
Sectoral gauges were mixed in the morning session on the National Stock Exchange volatility. While Nifty Auto, Nifty Metal, and Nifty Realty opened higher, Nifty Consumer Durables was the worst-performing sectoral index in the morning session, witnessing heavy selling.
Hindustan Aeronautics, Hero MotoCorp, Muthoot Finance, Bharat Forge, and Grasim Industries, among a host of others, will declare their quarterly numbers for the July-September period of this fiscal year today.
In the words of Akshay Chinchalkar, Head of Research at Axis Securities, “Market momentum has become deeply oversold, but such conditions are often seen in downtrends. The market must demonstrate some strength by taking above yesterday’s high and sustaining above support. Till then, the bears rule. The next key downside target is between 23,200 and 23,300.”
Elsewhere in the region, Japan’s Nikkei 225 and South Korea’s KOSPI each had minor gains. Hong Kong’s Hang Seng and Taiwan’s weighted index fell.
ANI