Indian benchmark indices opened marginally higher on Thursday, with the Sensex starting at 81,758.07 and the Nifty50 trading at 25,027.40, 0.22 per cent above Wednesday’s closing of 24,971.30.

Bajaj Auto led the decline, falling 7.53 per cent despite better-than-expected Q2 results, followed by Hero MotoCorp dropping 3.75 per cent. Other auto majors M&M and Eicher Motors also declined by 2.08 per cent and 1.87 per cent respectively.

Technology stocks showed strength with Infosys gaining 1.49 per cent ahead of its quarterly results, while Wipro rose 1.06 per cent. Banking major SBI advanced 1.17 per cent, and infrastructure giant L&T gained 0.80 per cent.

“The weakness would increase if it breaks the levels of 24,700/80,600,” said Shrikant Chouhan, Head Equity Research, Kotak Securities, noting that the market witnessed consistent selling pressure at higher levels.

Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹3,436 crore on October 16, while Domestic Institutional Investors bought shares worth ₹2,256.29 crore.

Global factors provided mixed cues, with US markets reaching new highs overnight. “Major U.S. stock indexes bounced back from a selloff in the prior session to finish higher on Wednesday, buoyed by strong corporate-earnings results from names like Morgan Stanley and United Airlines,” noted Deepak Jasani, Head of Retail Research at HDFC Securities.

In commodities, gold rallied toward fresh record highs as investors focused on the upcoming US election. Oil prices steadied at $74/bbl following previous day’s losses of over 4 per cent amid easing geopolitical concerns and weakening Chinese demand.

“Market is expected to open positively due to a rally in global markets, spurred by strong quarterly results from US listed Morgan Stanley and an optimistic earnings forecast,” said Vikas Jain, Head of Research at Reliance Securities.

The market awaits crucial quarterly results from prominent companies including Axis Bank, Infosys, Wipro, and Nestle India. Additionally, BlackRock Inc. is reportedly in talks with Mukesh Ambani’s Jio Financial Services to establish a private credit venture in India.

“Nifty is consolidated between 24850 – 25250 level,” added Jain, suggesting a range-bound trading session ahead.

Technical analysts advise caution, with Sameet Chavan of Angel One noting that “a break below 24900 could open doors for further weakness, potentially testing the 24700 level.”

The market sentiment remains fragile due to persistent FII selling, with October witnessing outflows of ₹67,300 crore, alongside ongoing Middle East tensions and concerns over China’s economic outlook.

Published on October 17, 2024