Nifty Sensex opens flat, experts say markets likely to move ahead before results
May 21, 2024
Delhi [India], May 21 : Stock markets started Tuesday's trading session on a flat note amid mixed global cues. The Nifty 50 index stood at 22,458 after losing 40 points, while the Sensex shed 206 points to 73,801 at the time of filing this report.
In the Nifty 50 index, 20 stocks opened with gains, 29 declined, and one remained unchanged.
"We believe that as long as the market is trading above 22300/73300, the bullish sentiment is likely to continue and the market is likely to move up to 22550-22650/74200-74500," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Among the top gainers in the Nifty 50 were ONGC, Hindalco, TechM, Tata Steel, and Apollo Hospital. The top losers included Nestle India, Axis Bank, Divis Labs, Britannia, and HCL Tech.
"With five stages in the 7-stage elections completed, the market is slowly showing signs of stability. The negative trigger of sustained FII selling also seemed to be over when the FIIs turned buyers last Friday. The prime minister has hinted about a sharp rally in the market after June 4th. The market is likely to move ahead before the election results since the market is smart enough to anticipate the results" said K Vijaykumar, chief investment strategist, Geojit Financial Services.
According to the data from National Securities Depository Limited (NSDL) the foreign investors sold Indian stocks worth Rs 28,242 crore so far in May.
In April too, FPIs were net sellers in Indian stocks, as the ongoing geopolitical crisis in the Middle East then likely pushed investors to take money off their portfolios.
The market experts point out the selling by foreign investors as one of the reasons for the recent declines in the Indian markets.
According to market statistics from the National Stock Exchange, a total of 2,113 shares started trading on Tuesday. Of these, 1,096 traded with gains, 799 declined, and 218 remained unchanged.
The Asian markets took a breather after seven days of gains. The MSCI all-country gauge declined, with mixed performance across regions: Japanese shares rose, while stocks in Hong Kong, China, and Australia fell.
Global trading is influenced by expectations of Federal Reserve policy easing, the US corporate earnings season, and China's economic recovery. Nvidia's earnings report is highly anticipated, with significant market impact expected.
In the Middle East, geopolitical developments add to market uncertainty. The death of Iranian President Ebrahim Raisi and concerns over the health of Saudi Arabia's king could affect regional stability.
