Indian stock markets opened almost flat on Friday, weighed down by weak global cues and worries over the health of US regional banks.
The Nifty opened at 25,546.85, down 38.45 points (0.15%), while the Sensex opened at 83,352.55, down 115.11 points (0.14%).
Markets had closed higher on Thursday, buoyed by global momentum and expectations of a possible India-US trade deal in November.
Banking and market expert Ajay Bagga told ANI that the markets were largely unfazed by former US President Trump’s statements and Indian government clarifications on Russian oil imports. “If Trump meets Putin in Budapest and strikes a deal, the issue will become irrelevant. After 13 months of underperformance, Indian markets are setting up for a recovery,” he said.
He also added that RBI intervention to curb rupee shorting speculation boosted investor confidence. “With several big results expected over the next three days, markets remain in an overbought zone, but momentum is positive,” he noted.
Several companies are scheduled to announce Q2 earnings today, including Reliance Industries, Dixon Technologies, JSW Energy, JSW Steel, Polycab India, Central Bank of India, CESC, CRISIL, Dalmia Bharat, DCB Bank, Havells India, HFCL, Himadri Speciality Chemical, India Cements, and IndiaMART InterMESH.
Thursday had initially seen a “hope trade” after Trump revealed discussions with Putin and plans for a meeting in Budapest to resolve the Ukraine conflict peacefully. However, optimism was overshadowed by credit write-offs by several US regional banks, triggering a global sell-off. Nearly USD 100 billion was wiped off the market capitalization of over 70 US banks after shares fell due to links with borrowers accused of fraud.
The situation was further worsened by the US government shutdown, as the Senate failed to reopen the government for the 10th time on Thursday.
Asian markets also opened lower, reflecting US banking sector concerns and ongoing US-China trade tensions. Meanwhile, US bond yields, oil, cryptocurrencies, and the US dollar fell, while gold rose for the ninth consecutive week.
-ANI
