Markets Open Flat As Global Uncertainty Weighs; Auto Stocks Drag While Broader Sentiment Remains Cautiously Bullish

The Indian stock market started on a subdued note Wednesday as global trade worries persisted, with automobile stocks weighing heavily on domestic indices.

As of 9:25 AM, the Nifty rose by 22 points or 0.09% to 24,843, while the Sensex edged up 64 points or 0.08% to 81,402.

Broader market indices showed slight gains, with the BSE MidCap index up 0.09% and the BSE SmallCap rising 0.33%.

Sector-wise, auto stocks were the biggest underperformers, with the Nifty Auto index down by 0.54%.

Other sectors like realty and oil & gas also posted mild losses of around 0.30%. On the upside, media and metal sectors each gained about 0.30%.

From a technical perspective, analysts noted that Nifty has bounced back after finding support at its 100-day exponential moving average (EMA), closing above the key 24,800 level.

A bullish candlestick pattern, backed by robust trading volumes, suggests buying activity at lower price levels.

Hardik Matalia of Choice Broking said, “If the index sustains at levels above 24,800, a further rally toward 25,000 and 25,200 can be anticipated in the near term. However, on the downside, 24,600 serves as immediate support, and a decisive break below this level could trigger a deeper correction.”

He added that fresh long positions should only be considered if Nifty stays above the 25,150 mark. He also advised traders to remain alert to key resistance levels and global developments.

In the Nifty 50 pack, Larsen & Toubro led the gainers with a 3.70% rise, followed by Bharat Electronics at 1.27%.

Other notable gainers included Jio Financial, Tata Steel, and Hindalco.

On the losing side, Tata Motors dropped 3.31%, with Asian Paints, Dr Reddy’s Laboratories, Bajaj Auto, and Infosys also among the major laggards.

Overnight, US markets ended lower. The Dow Jones Industrial Average slipped 0.46%, the Nasdaq Composite fell 0.38%, and the S&P 500 declined by 0.3%.

VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, asserted, “The FOMC decision today is unlikely to impact the market. A rate cut by the Fed is unlikely today. Fed commentary on the evolving economic outlook would be more important.”

Asian markets showed mixed trends amid renewed trade concerns.

Chinese markets advanced 0.52%, and South Korea’s Kospi rose 0.83%. Japan’s Nikkei 225 was flat with a minor 0.02% gain, while Hong Kong’s Hang Seng fell 0.37%.

This followed US Commerce Secretary Howard Lutnick’s confirmation that President Trump would not extend the deadline for imposing tariffs on trading partners beyond Friday.

Foreign institutional investors (FIIs) remained net sellers on July 29, offloading equities worth Rs 4,636 crore. This marked their sixth consecutive session of selling.

In contrast, domestic institutional investors (DIIs) were net buyers, infusing Rs 6,146 crore into the markets.

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