Indian equity markets opened nearly flat on Monday as investors remained cautious ahead of several key monetary policy decisions scheduled this week from major central banks worldwide.
The Nifty 50 index opened at 25,118.90, a marginal gain of 4.90 points or 0.02 per cent. The BSE Sensex also edged higher, opening at 81,925.51 with a gain of 20.81 points or 0.03 per cent.
Market experts noted that this week will be crucial, with 16 central banks holding policy meetings, including the US Federal Reserve.
Ajay Bagga, banking and market expert said, “This is a very heavy week for monetary policy actions, with 16 central banks meeting amid geopolitical tensions, policy uncertainty, and protests across countries from Indonesia to Nepal to the UK. The US Fed meeting will be the focal point, and markets could react negatively if the Fed signals a pessimistic outlook for the US labour market. Indian markets are watching for the Fed rate cut, which should lead to a softer US dollar and increased flows into emerging markets. GST developments, Trump Truce talks, and Fed action will be the key drivers for Indian markets. Expect volatility, with some selling likely after the Fed decision.”
Broader market indices reflected a mixed trend in early trade. The Nifty 100 slipped 0.02 per cent, while Nifty Midcap 100 and Nifty Smallcap 100 posted marginal gains.
Sectoral performance was mixed as well. Nifty IT fell 0.63 per cent, while Nifty Pharma declined 0.83 per cent. On the other hand, Nifty Auto gained 0.36 per cent, Nifty FMCG was flat in positive territory, Nifty Metal advanced 0.26 per cent, Nifty Realty rose 0.51 per cent, and Nifty Oil & Gas inched up 0.05 per cent.
Siddhartha Khemka, Head of Research (Wealth Management), Motilal Oswal Financial Services, said, “Globally, a 25 bps Fed rate cut is widely expected following weak US jobs data. Overall, the near-term market outlook remains constructive, though some volatility is expected around central bank events. Progress in India-US trade negotiations could further boost investor confidence.”
Among Nifty 50 constituents, top gainers in early trade included Eternal (Zomato), Hero MotoCorp, Bajaj Auto, and Bajaj Finance, while Dr. Reddy’s Laboratories, Infosys, Sun Pharma, and HDFC Life were among the laggards.
Sunil Gurjar, SEBI-registered analyst and Founder of Alphamojo Financial Services, said, “After a week of back-to-back bullish candles, we are seeing strong buying interest, which could push prices higher. The current price is hovering near a key resistance level, with 25,200 acting as a crucial resistance. A breakout above this level would signal a continuation of the uptrend. Prices are trading above all key moving averages, indicating further upward momentum.”
Across Asian markets, Japan’s Nikkei 225 opened 0.88 per cent higher, South Korea’s Kospi rose 0.52 per cent, and Hong Kong’s Hang Seng gained 0.47 per cent. Taiwan’s Weighted Index slipped 0.33 per cent, while Singapore’s Straits Times edged down 0.03 per cent in a subdued opening.
(With inputs from ANI)
