Sensex Falls 112 Points As Global Markets Send Mixed Signals

The Indian stock market opened the Wednesday session on a cautious note, with Nifty 50 slipping by 41 points or 0.16 per cent to 24,939 and the BSE Sensex falling 112 points or 0.14 per cent to 81,531.

Broader markets underperformed as the Nifty Midcap 100 and Nifty Smallcap 100 ended lower by 0.17 per cent and 0.19 per cent, respectively.

The Nifty Bank index also dropped by 0.42 per cent, while other sectoral indices posted moderate losses of up to 0.50 per cent.

Investors remained cautious amid mixed signals from global markets. Asia-Pacific markets fell during early trade, following Wall Street declines overnight.

Japan’s exports in July fell 2.6 per cent year-on-year, exceeding forecasts of a 2.1 per cent decline, marking the steepest drop in four years.

In the US, the Dow Jones inched up 0.02 per cent, whereas the NASDAQ declined 1.46 per cent and the S&P 500 fell 0.59 per cent.

In Asia, China’s Shanghai and Shenzen indices fell 0.04 per cent and 0.59 per cent respectively, while Japan’s Nikkei dropped 1.52 per cent, Hong Kong’s Hang Seng slipped 0.41 per cent, and South Korea’s KOSPI fell 1.86 per cent.

Domestic Factors and Sector Focus

Domestic sentiment remained buoyed by expectations of GST reforms likely to be implemented before Diwali, which had pushed Nifty up by 364 points over the past three sessions.

However, Vinod Nair, Head of Research at Geojit Investments, noted that ‘there is no scope for a sustained rally since US tariff policies on India remain uncertain’.

He suggested that in the short term, investors may focus on domestic consumption themes, including banking, financials, telecom, hotels, healthcare, automobiles, and cement, particularly in fairly valued segments.

Technically, the Nifty has been consolidating in a sideways-to-bullish trend after a gap-up opening. Mandar Bhojane from Choice Equity Broking said, “The index continues to find support at almost every major EMA level, indicating strong underlying strength.”

If Nifty sustains above 25,050, it could target 25,250 and 25,500 in the coming sessions. Analysts suggest that market dips may present buying opportunities, reflecting a cautiously optimistic outlook.

Foreign Institutional Investors (FIIs) turned net sellers on Tuesday, offloading Indian equities worth Rs 634 crore, while Domestic Institutional Investors (DIIs) continued supporting the market with net purchases of Rs 2,261 crore.

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