Markets Open Flat Despite Positive Flows; IT Stocks Under Pressure

The Indian stock market started the week on a cautious note, opening flat amid mixed global cues.

At 9:32 AM, the BSE Sensex was marginally up by 3.88 points at 82,326.71, while the NSE Nifty rose by 14.70 points to 25,034.50.

Nifty Bank gained 134.25 points (0.24%) to trade at 55,489.15.

Mid- and small-cap stocks also registered mild gains, with the Nifty Midcap 100 index rising 143.30 points (0.25%) to 57,203.80, and the Nifty Smallcap 100 up by 141.35 points (0.80%) at 17,701.75.

According to market experts, Nifty is nearing its October 2024 peak of 25,235, with the September 2024 high of 26,277 also looming on the horizon.

This suggests a need for caution, as investor sentiment may shift if the market struggles to break through resistance levels.

Anand James, Chief Market Strategist at Geojit Financial Services, commented, “We expect the uptrend to continue with an intraday downside marker at 24,950. However, a failure to breach 25,235 or a fall below 24,870–24,807 could trigger a correction.”

The sustained rally in Indian equities has been largely fuelled by robust foreign institutional investor (FII) inflows.

So far this month, FIIs have poured in over ₹23,800 crore, reflecting strong global confidence in the Indian market.

Experts also point to the easing of global trade tensions, continued strength in US markets, and improved India-Pakistan ties as contributing factors behind the market’s momentum.

Top Gainers & Losers

Within the Sensex pack, major IT players such as Infosys, TCS, HCL Tech, Tech Mahindra, and IndusInd Bank were among the top losers.

On the other hand, NTPC, Bajaj Finance, Tata Motors, Sun Pharma, SBI, and HDFC Bank led the gainers’ list.

Asian markets presented a mixed picture. Indices in China, Hong Kong, Japan, Bangkok, and Seoul were trading in the red, while Jakarta was the only major Asian index in positive territory.

In the US, the previous Friday’s trading session ended on a strong note.

The Dow Jones climbed 331.99 points (0.78%) to close at 42,654.74. The S&P 500 rose by 41.45 points (0.70%) to 5,958.38, and the Nasdaq gained 98.78 points (0.52%) to settle at 19,211.10.

On May 16, FIIs were net buyers to the tune of ₹8,831.05 crore, while domestic institutional investors (DIIs) added ₹5,187.09 crore worth of equities to their portfolios.

As the week unfolds, investor attention will remain focused on key resistance levels, global developments, and continued institutional flows.

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