India’s benchmark indices opened flat on Wednesday, entering a consolidation phase as investors awaited key US consumer inflation data.
The Nifty edged up by 10.45 points, or 0.04 percent, to 24,620.50, while the Sensex gained 58.34 points, or 0.07 percent, to 81,568.39.
Market experts highlighted the significance of the US Consumer Price Inflation (CPI) report, which is expected to influence global markets. However, the consolidation in Indian markets is expected to continue, with the possibility of a rally toward the end of the year.
Ajay Bagga, a banking and market expert, said, “With US markets at their 57th all-time high, there’s limited room for the US CPI to come in higher than 0.3 percent without causing some disruption. Indian markets are likely to remain sideways today as institutional investors await the USI CPI release this evening. We expect consolidation followed by a pre-Budget rally, which could drive Indian markets higher by year-end.”
Among sectoral indices, Nifty Bank, Nifty Financial, and Nifty IT saw selling pressure, while Nifty Auto, Nifty FMCG, Nifty Media, and Nifty Metal posted gains.
In the Nifty 50, 29 stocks gained, while 21 declined at the time of this report. Ultratech Cement, Grasim, Tata Consumers, and BPCL were among the top gainers, while Dr. Reddy’s, HCL Tech, ICICI Bank, and HDFC Bank were the major laggards in the opening session.
Akshay Chinchalkar, Head of Research at Axis Securities, said: “The Nifty ended down a third day, but the late-session rebound has traced a candlestick with a long lower shadow, showing demand near 24500. Note that this level represents a so-called “polarity” zone which was formerly resistance. The immediate upside hurdle is the flat-lining 100DMA near 24700, while a critical support zone lies between 24360 and 24445.”
In broader Asian markets, indices also showed a lack of momentum. The Nikkei 225 slipped 0.27 percent, the Hang Seng was flat, and the Taiwan Weighted index declined 0.41 percent. Meanwhile, South Korea’s KOSPI continued its recovery.
(With ANI input)
