Stock Markets open flat, valuations remain a concern, FIIs cutting positions: Experts
Jul 30, 2024
New Delhi [India], July 30 : Benchmark indices opened near flatline on Tuesday after nearly touching 25,000 in the previous trade session.
On Tuesday, Nifty at National Stock Exchange or NSE opened in green territory at 24,839.40 up 3.30 points a marginal 0.01 per cent up, while the BSE Sensex opened with the red mark at 81349.30 down 6.56 points or 0.01 per cent.
In the opening hours of the trade, the gainers were Powergrid, NTPC, BPCL, Asian Paints, and Tata Motors. On the other hand the top losers were SBI Life, Hindalco, HDFC Life, Cipla and LTIMindtree.
Among the sectoral stocks at the NSE, bank, Auto, FMCG,Media, PSU Bank, Private Bank, Realty, Consumer Durables, Oil and Gas opened with the green mark. The sectoral stocks of Healthcare, pharmaceuticals, metals, IT and Financial Services opened in red.
On Monday, domestic equities remained flat, with the Nifty 50 reaching a record high near 25,000.
The Nifty 50's daily chart formed a small negative candle, suggesting a potential consolidation phase in the short term.
"Despite this, the overall uptrend remains intact, with the index potentially experiencing minor dips or choppy movements before resuming a bullish trend," Varun Aggarwal MD, Profit Idea.
Observing today's market, Ajay Bagga, Market and banking expert, said, "FIIs who went into the Indian Budget with long positions have been cutting positions and that has been a big factor in holding back the Indian markets. We expect this to continue till the BOJ/Fed event gets over by Wednesday afternoon/night respectively."
"Consolidation is the name of the game but we stay structurally positive on the Indian markets given the macro tailwinds speeding the overall economy and corporate profits. Valuations remain a concern so it is not all smooth sailing , but a rocky move upwards with a lot of stalling on the way, he added.
Global markets were mixed, with Asian indices trading lower and US indices showing mixed results. The Dow Jones fell by 0.12 per cent to 40,539.93, while the S&P 500 gained 0.08 per cent to 5,463.54, and the Nasdaq Composite rose 0.07 per cent to 17,370.20.
Tesla and McDonald's saw significant gains, while Coinbase and Riot Platforms declined. Crude oil prices hovered near a seven-week low amid concerns over demand, particularly from China. The US dollar index rose by 0.18 per cent to 104.56, awaiting global central bank policy decisions.
