Sensex and Nifty opened lower on Wednesday, defying expectations of a positive start amid global market gains. The BSE Sensex fell 47.14 points (-0.06 per cent) to 78,908.89, while the NSE Nifty declined 4.90 points (-0.02 per cent) to 24,134.10 at 9:32 AM.
This downturn contrasts with the broader Asian market trends and Tuesday’s U.S. stock rally. The S&P 500 and Nasdaq Composite recorded their largest four-day gains of 2024 following softer-than-expected U.S. producer price data.
Deepak Jasani, Head of Retail Research at HDFC Securities, commented, “Nifty could now head first towards the 23892-23960 band while 24347 could provide resistance in the near term.”
Top gainers on the NSE at 9:30 AM included Hindalco (1.61 per cent), HCL Tech (1.41 per cent), and M&M (1.12 per cent). The top losers were Divi’s Lab (-2.77 per cent), Hero Motocorp (-2.24 per cent), and Ultratech Cement (-2.14 per cent).
Investors are awaiting U.S. consumer price figures for July, due later Wednesday, and Thursday’s retail sales data for further indications of potential Federal Reserve rate decisions.
Vikas Jain, Head of Research at Reliance Securities, said, “The decline in domestic inflation to a five-year low, along with favorable US PPI data and strong quarterly corporate results, is expected to positively impact market sentiment. FMCG, auto, and pharma stocks could benefit from these positive results. However, some intra-day volatility might occur due to global market fluctuations. Additionally, sugar stocks are likely to perform well following news that the government is considering raising ethanol prices to boost production and achieve a 20% blending target by 2025-26.”
The domestic market’s performance comes despite India’s inflation dropping to a five-year low and strong quarterly corporate results. FMCG, auto, and pharma stocks were anticipated to see gains.
Sugar stocks may still perform well following reports of potential government measures to boost ethanol production.
Global commodities saw mixed movements, with gold gaining 1% to nearly $2,467/ounce and Brent crude climbing to around $81 a barrel.
Foreign Institutional Investors (FIIs) were net sellers in both cash and F&O segments, offloading over ₹10,000 crore.
Markets will be closed on Thursday for Independence Day.
