Indian benchmark indices opened flat on Tuesday morning, with the Sensex opening higher at 78,707.37 from its previous close of 78,540.17 but slipping to 78,454.74 as of 9.40 AM, down by 85.43 points or 0.11 per cent.
Similarly, the Nifty opened slightly higher at 23,769.10 compared to its previous close of 23,753.45 and is now trading at 23,732.20, losing 21.25 points or 0.09 per cent, following mixed global cues and continued selling pressure from foreign institutional investors.
The market sentiment remained cautious as FIIs sold equities worth ₹168.71 crore on December 24, while domestic institutional investors provided support by purchasing equities worth ₹2,227.68 crore. The Indian Rupee hitting a record low of ₹85.13 against the dollar added to the market’s concerns.
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“The relief rally witnessed yesterday is unlikely to have a free run up in the coming days. Two sets of factors- external and internal- will restrain a sustained rally. Externally, the strong dollar and high bond yields in the US will prompt the FIIs to sell on rallies. Internally, the growth and earnings slowdown will be near-term negatives that will restrain the bulls,” said Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
Among the top gainers on the NSE at 9.40 am, Tata Motors led with a 0.93 per cent increase, followed by TCS (0.67 per cent), Adani Enterprises (0.53 per cent), Eicher Motors (0.49 per cent), and Britannia (0.44 per cent). The losers were led by JSW Steel (-1.13 per cent), followed by Tata Steel (-0.96 per cent), Shriram Finance (-0.90 per cent), Bharti Airtel (-0.69 per cent), and IndusInd Bank (-0.68 per cent).
The market’s technical outlook suggests a cautious approach. “For traders, 23650/78300 and 23550/78000 would serve as key support zones, while the 200-day SMA or 23850/78800 and 24000/79300 could act as crucial resistance levels for the bulls,” noted Shrikant Chouhan, Head Equity Research, Kotak Securities.
In the commodities market, gold found support at ₹75,880-75,640, while resistance stood at ₹76,270-76,480. Crude oil futures traded higher, with March Brent oil futures at $72.51, up by 0.26 per cent, and February crude oil futures on WTI at $69.42, showing a similar increase.
Global markets showed mixed trends, with U.S. stocks ending higher on Monday, driven by technology stocks. However, the U.S. Conference Board’s consumer confidence index fell 8.1 points to 104.7, a three-month low, indicating concerns about the stock market and potentially higher living costs.
“MSCI’s Asian equity benchmark is headed for its first quarterly loss since September 2023, losing 7 per cent over the period, even as the S&P 500 has risen 3.7 per cent,” reported Deepak Jasani, Head of Retail Research at HDFC Securities.
Looking ahead, Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., suggests that “the next major catalysts will likely emerge in January with the Q3 earnings season. Until then, market upside may remain capped unless FIIs return to buying.”
The INDIAVIX, indicating market volatility, traded at 13.52, showing a 10.30 per cent decline from the previous session, suggesting reduced market anxiety despite the challenging economic backdrop.
