Selling pressure returned to Indian markets on Thursday after a brief rebound in the previous session, as sustained foreign institutional investor (FII) outflows weighed on sentiment.
Both benchmark indices opened lower, reflecting weakness across sectors, although select pockets such as metals and PSU banks managed to register gains.
The Nifty 50 opened at 24,759.55, down 76.75 points or 0.31 per cent, while the BSE Sensex slipped 299.17 points or 0.37 per cent to 80,684.14.
Broader markets showed mixed trends, with the Nifty 100 down 0.20 per cent, Nifty Midcap 100 edging up 0.14 per cent, and Nifty Smallcap 100 trading flat with a marginal gain of 0.02 per cent.
Sectorally, FMCG, IT, media, and realty stocks faced early pressure, while auto shares opened flat. In contrast, metal and PSU bank stocks were among the top gainers, providing some cushion to the indices.
Meanwhile, gold continued its rally, marking new highs for the seventh consecutive week. Manav Modi, Analyst at Motilal Oswal Financial Services, said, “Gold held steady and was set for a seventh straight weekly gain, buoyed by expectations of further U.S. interest rate cuts this year and concerns over the impact of a U.S. government shutdown. Silver witnessed some profit booking after hitting an all-time high domestically and a 14-year high on COMEX.”
Globally, concerns remained heightened as the U.S. government shutdown entered its second day, likely delaying key economic data releases, including the non-farm payrolls report and unemployment rate. Analysts said this could add uncertainty to market projections.
Back home, markets had staged a sharp recovery on Wednesday, snapping eight consecutive sessions of decline. Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, “On daily charts, the market has formed a long bullish candle and a reversal pattern, supporting a further uptrend. Key support zones for day traders are 24,800–24,700 on the Nifty and 80,800–80,500 on the Sensex. As long as the market trades above these levels, a pullback is likely to continue. On the upside, Nifty could move to 24,950–25,000 and Sensex to 81,300–81,500, with potential further gains. Below these support levels, market sentiment could change.”
In other Asian markets, Japan’s Nikkei 225 surged 1.46 per cent, Taiwan’s weighted index advanced 0.98 per cent, while Hong Kong’s Hang Seng index slipped 0.95 per cent, reflecting mixed regional cues.
-ANI