India’s benchmark indices opened flat on Thursday, ahead of the release of crucial Consumer Price Index (CPI) inflation data. The Nifty 50 slipped by 37.35 points, or 0.15 percent, to 24,604.45, while the Sensex dipped 49 points, or 0.06 percent, to 81,476.76.
Market experts predict volatility due to the expiry of futures and options (F&O) contracts later today.
Ajay Bagga, a banking and market expert, said: “The markets are consolidating within a tight range. Expect some volatility due to the F&O expiry. With the Fed rate cut almost certain, the next major catalyst for Indian markets will be today’s inflation data, which is expected to show a month-on-month decline in the CPI. Our outlook remains one of consolidation, followed by a year-end rise.”
Bagga noted that U.S. consumer prices, released on Tuesday, came in line with estimates, increasing the likelihood of a Federal Reserve rate cut next week to over 98 percent.
In the Nifty 50, 23 stocks advanced while 27 declined. Top gainers included Tech Mahindra, Bharti Airtel, TCS, and Wipro, while Apollo Hospital, SBI Life, BPCL, Trent, and Titan were among the biggest losers.
Among sectoral indices, Nifty Bank, Nifty IT, Nifty Metal, Nifty Pharma, and Nifty Healthcare recorded gains, while others retreated.
Akshay Chinchalkar, Head of Research at Axis Securities, said: “Indecision on the Nifty continues to prevail as resistance at 24700 has held strong. The market has formed a short-term “pennant” with the highs falling and the lows rising, which means the potential for an upside breakout that targets the 24800 – 25000 hurdle zone remains high. Support at 24500 should hold for this view to pan out.”
On Wednesday, foreign investors sold equities worth Rs 1,012 crore, while domestic institutional investors (DIIs) purchased equities worth Rs 2,000 crore.
In broader Asian markets, Japan’s Nikkei 225 surged 1.28 percent, Taiwan’s Weighted Index rose 0.93 percent, Hong Kong’s Hang Seng gained 0.68 percent, and South Korea’s market advanced 0.35 percent.
Brent crude was trading at USD 73.66 at time of filing this report, with a slight uptick.
(With ANI input)
