Markets Start On Weak Note As Global Cues And FII Outflows Pressure Sentiment

Indian equity benchmarks opened slightly lower on Thursday, with ongoing volatility and uneven signals from overseas markets dampening investor mood.

By 09:25 AM, the Sensex had slipped 91 points, or 0.11 per cent, to 81,807, while the Nifty was lower by 24 points, or 0.096 per cent, at 25,081.

Concerns over foreign fund withdrawals and restrictions on US visas weighed on traders, even as attention shifted to the second-quarter earnings season and expectations of progress on a possible India–US trade agreement.

The broader indices also edged down, with the Nifty Midcap 100 and Nifty Smallcap 100 each declining by 0.04 per cent.

Gainers and Losers

Among notable gainers on the Nifty were Hindalco, Dr Reddy’s Labs, ONGC, Tata Steel, and Tata Consumer, while laggards included Tata Motors, Bajaj Finance, Titan Company, Maruti Suzuki, and Hero MotoCorp.

Sectorally, Nifty IT was the biggest drag, losing 0.23 per cent. Nifty Auto fell 0.21 per cent, and Nifty Private Bank dropped 0.14 per cent.

In contrast, Nifty Metal and Nifty Pharma registered small advances.

Despite holding above 25,000, the Nifty ended lower for a fourth straight session.

According to analysts, the index has repeatedly failed to sustain moves beyond the 25,278–25,330 band, signalling persistent selling pressure and a cautious stance in the market.

They further added that the immediate resistance zone is seen at 25,100–25,250, while support levels are pegged at 25,000 and 24,900.

Experts believe India’s reform measures and supportive interest rate environment have the potential to lift growth and corporate earnings, which could eventually attract back foreign flows, though the timing remains unclear.

Overnight, US markets closed weaker, with the Nasdaq shedding 0.34 per cent, the S&P 500 down 0.28 per cent, and the Dow sliding 0.37 per cent.

In Asia, most markets were trading higher during the morning. Shanghai gained 0.19 per cent, Shenzhen rose 1.29 per cent, Nikkei inched up 0.20 per cent, and Hong Kong’s Hang Seng climbed 0.37 per cent. South Korea’s Kospi eased 0.02 per cent.

Data showed that on Wednesday, foreign institutional investors (FIIs) sold equities worth Rs 2,425 crore, while domestic institutional investors (DIIs) bought shares worth Rs 1,211 crore.

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