CHENNAI: The Indian equity markets have started on a cautiously negative note on Thursday. While the broad indices are under pressure, fundamentals are holding up in select sectors as volatility remains high, but opportunity lies in discerning sector leadership.
GIFT Nifty, a key pre-market indicator, was trading about 70 points lower, hinting at a soft start—with global cues seen as pivotal for today's direction.
In the early session, Nifty50 opened slightly below 24,800, roughly at 24,803, down ~9 points (–0.04%), and Sensex began the session around 81,410, off nearly 34–100 points (–0.04% to –0.12%).
Key Drivers Behind the Opening Dip
1. Global Turbulence
Geopolitical tension in the Middle East—specifically Israel–Iran developments—fueling risk aversion.
US Federal Reserve's hawkish tone: Despite holding rates steady, it signaled fewer cuts later this year, maintaining tightening pressure.
2. Sector-wise weakness
Broader Asian markets plunged, with MSCI Asia ex‑Japan off about 1.1%, and in India, IT, banking, and financials were major laggards in early trading.
The losers in the opening trade on Thursday were TCS, Tech Mahindra, HCL Tech, HUL, JSW Steel – all under pressure, reflecting broader sectoral weakness.
While the gainers included Titan, Maruti, Trent, Bharti Airtel, Axis Bank are outperforming, showing selective buying interest.
This aligns with analysts suggesting that while headline indices are subdued, pockets of strength persist—especially in consumer, auto, telecom, and private banking stocks.
However, analysts expect session trends to hinge on new global developments—notably US interest rate commentary and any fresh Middle East news.
Today’s action will pivot on fresh US Fed commentary and Middle East developments, they say.
on the domestic corporate front, earnings or corporate announcements later in the day—could be potential triggers for sharp moves.
Global overnight cues (U.S. indices, commodities, currency) could also set tone for the remainder of the session.