Stock markets opened with a cautious sentiment on Thursday, reflecting a complex interplay of domestic and global economic factors. The Sensex and Nifty showed modest gains, with investors closely monitoring multiple economic signals and institutional movements.

The Sensex opened marginally lower at 79,032.99 from its previous close of 79,043.74 but has moved up, trading at 79,402.52 as of 9.52 AM, gaining 358.78 points or 0.45 per cent. Similarly, the Nifty opened slightly higher at 23,927.15 compared to its previous close of 23,914.15 and is currently at 24,034.20, rising by 120.05 points or 0.50 per cent.

The National Stock Exchange introduced F&O contracts for 45 new stocks across diverse sectors, including finance, technology, and renewable energy. Notable additions include Indian Bank, Union Bank, LIC, Cyient, KPIT Technologies, Adani Green Energy, DMart, and Zomato.

Foreign Institutional Investors (FIIs) displayed significant selling pressure, offloading equities worth ₹11,756 crore on November 28, contrasting with Domestic Institutional Investors (DIIs) who were net buyers, purchasing equities worth ₹8,718 crore.

“A perplexing market action in recent days is the inexplicable volatility in FII activity,” said Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. “A few days of buying followed by yesterday’s massive selling is difficult to explain.”

Sector-specific movements were prominent. Banking stocks showed potential positive traction due to improved deposit growth, with credit growth slowing to 11.15 per cent year-on-year, while deposit growth slightly exceeded at 11.21 per cent, according to RBI data.

The insurance sector attracted attention as the government proposed raising Foreign Direct Investment (FDI) limits from 74 per cent to 100 per cent, potentially opening up new investment opportunities.

Top gainers included pharmaceutical stocks, with Sun Pharma (1.77 per cent), Cipla (1.75 per cent), and Dr Reddy’s (1.68 per cent) leading the pack. Mahindra & Mahindra (1.36 per cent) and Adani Ports (1.23 per cent) also showed positive momentum.

Conversely, power and utility stocks faced challenges, with Power Grid experiencing a 1.54 per cent decline. Shriram Finance (-0.37 per cent), Coal India (-0.36 per cent), ITC (-0.27 per cent), and Tech Mahindra (-0.16 per cent) were among the top losers.

“The market is expected to open on a flat note due to concerns over FII selling and a weak start in Asian markets,” noted Vikas Jain, Head of Research at Reliance Securities. “Asian indices dropped by up to 2 per cent following inflation data from Japan that exceeded expectations.”

Technical analysts highlighted critical market levels. “Immediate support is placed at 23,800 and 23,680, which align with strong Fibonacci levels,” explained Mandar Bhojane from Choice Broking. “On the upside, 24,350 serves as immediate resistance.”

Global factors continued to influence market sentiment, including ongoing concerns about US inflation, potential tariff threats, and uncertainty surrounding Federal Reserve rate policies.

Market participants are advised to remain cautious and monitor sector-specific movements, with particular attention to banking, mid-cap, and small-cap stocks.

The market’s trajectory remains uncertain, with investors and analysts closely watching upcoming economic indicators and global economic developments.

Published on November 29, 2024