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Markets opened mixed on Thursday morning, with the benchmark Sensex slipping 53.17 points or 0.07 per cent to 80,693.61, despite a higher open at 80,912.34, compared to the previous close of 80,746.78. The Nifty declined 31.15 points or 0.13 per cent to 24,383.25, after opening at 24,431.50. as of 10 am. The cautious sentiment follows India’s pre-dawn military strikes on terror camps in Pakistan, though market reactions have been relatively muted.
Foreign Institutional Investors (FIIs) continued their buying spree, pumping in over ₹2,500 crore yesterday, marking the longest buying streak since 2020 with 15 consecutive sessions of inflows totalling nearly ₹10,000 crore over the past four sessions.
“The net long-to-short ratio for Foreign Institutional Investors in Index futures has surpassed the one level, reaching its highest point since October 4th. This suggests that FIIs have shifted to a net long position in Index Futures for the first time in seven months,” noted Devarsh Vakil, Head of Prime Research at HDFC Securities.
Among top gainers, Tata Motors led with a 2.64 per cent rise, followed by Coal India at 1.55 per cent, Kotak Mahindra Bank at 1.26 per cent, HCL Technologies at 1.10 per cent, and Adani Ports at 1.05 per cent. On the losing side, Eternal fell 1.98 per cent, Tata Consumer Products dropped 1.61 per cent, ITC declined 1.57 per cent, Maruti Suzuki decreased 1.37 per cent, and Hindalco was down 1.26 per cent.
The market is expected to remain volatile ahead of the Bank of England rate decision. Focus will also be on quarterly results from heavyweight companies including L&T, Titan, Asian Paints, Pidilite, Canara Bank, and Bharat Forge, scheduled for release today.
“The NIFTY-50 has been trading in a range of 24,200-24,450 levels over the past 5 days and we expect an either side breakout from current levels, extending the move to 24,800 or 23,800 levels,” said Vikas Jain, Head of Research at Reliance Securities. He added, “The first bout of support will move higher to the 200-day average of 24,050 levels and on the higher side positive momentum will be above 24,500 levels.”
Global factors are also influencing domestic markets. The US Federal Reserve kept its benchmark interest rates unchanged as expected and warned of rising inflation and unemployment risks. US-China trade talks scheduled for this weekend in Geneva have boosted market sentiment globally, with American stocks advancing on Wednesday.
“Though China’s trade surplus with America has moderated, Beijing’s surplus reached nearly $1 trillion in 2024. At the same time, the fear of Chinese goods being dumped into markets like India due to higher US tariffs is raising concerns for global and domestic industries,” said VLA Ambala, Co-Founder, Stock Market Today.
In commodities, gold prices declined by 2 per cent in the previous session, but have rebounded in early trade today. “COMEX Gold halted its two-day winning streak after the Federal Reserve opted to maintain interest rates at current levels. However, the downside was limited as the Fed highlighted concerns about economic headwinds from tariff-related uncertainties,” explained Deveya Gaglani, Senior Research Analyst-Commodities.
Crude oil surged above $58 per barrel due to a larger-than-expected decline in US crude stocks. “Despite the minor rise, oil prices remained at multi-year lows, weighed down by persistent uncertainty surrounding trade discussions between the US and China,” noted Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
The India-UK Free Trade Agreement is expected to benefit several sectors. “Major Positive for Beverages, Textiles, Shrimp Exporters, Metals, Automotives, IT, Electronics and Chemicals/Pharma,” according to market analysts.
“Technically, after a weak opening, the market rebounded sharply by over 200/500 points from the lowest point of the day. We believe the current market pattern is directionless; perhaps traders are waiting for a breakout on either side,” said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
As the day progresses, market participants will closely monitor quarterly earnings releases, global cues, and geopolitical developments for further direction.
Published on May 8, 2025
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