Markets Expected to Open Flat Amid Global Caution
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Summary: Indian stock markets might start the day quietly, after recent volatility in the US market and a range of global trends.
Indian stock markets may begin cautiously today, with early signs pointing to a flat to slightly rising trend. The GIFT Nifty index climbed by just 31 points, indicating a lack of market activity.
This follows a sharp collapse in the previous session, when the Sensex lost over 1,000 points and the Nifty fell more than 300 points. Rising US Treasury yields and growing concerns about the US budget imbalance have alarmed global investors, prompting a wave of caution.
Overnight, Wall Street closed flat. The Dow Jones and S&P 500 scarcely changed, but the Nasdaq finished marginally higher. Meanwhile, Asian markets sent contradicting signals: Japan's Nikkei jumped strongly, while Hong Kong and South Korea rose very slightly.
Back home, the India VIX, a measure of market volatility, fell modestly, indicating calmer investor sentiment. FMCG and IT stocks may attract some purchasing attention. However, the pharmaceutical and healthcare sectors may continue to be under pressure.
FIIs sold almost ₹5,000 crore in Indian shares during the last session. DIIs bought shares worth ₹3,700 crore to stabilise the market.
Overall, investors are expected to exercise caution today, closely following both global cues and sectoral developments for signs of stability in a turbulent market.
