Mumbai (Maharashtra) [India], September 24 : The Indian stock market opened on a weak note on Wednesday, extending its losing streak and marking 12 consecutive months of negative returns. Both benchmark indices started the day in the red as global and domestic headwinds continued to weigh on investor sentiment.
The Nifty 50 index opened at 25,108.75, down by 60.75 points or 0.24 per cent, while the BSE Sensex slipped 184.45 points or 0.22 per cent to begin the session at 81,917.65.
Market experts highlighted that the momentum generated by the recent GST rate cuts has been overshadowed by rising concerns over the H1B visa issue, which is also seen as a drag on improving India-US trade relations.
Ajay Bagga, Banking and Market Expert, told ANI, "Asian markets are weak this morning. Indian markets are also pointing to a weak open. The momentum due to the GST rate cuts is counterbalanced by the overhang of US tariffs and the H1-B visa issues. FPI selling remains strong and promoter/PE-VC sales, along with a big primary issuance pipeline, is moving liquidity out from secondary markets. Indian markets mark 12 months of negative returns today. Historically, markets tend to outperform after such a long underperformance. However, that will come once corporate earnings growth shows a bounce, which is expected over the next quarter or two."
In the broader market, indices also reflected mixed trends. The Nifty 100 and the Nifty Midcap 100 traded in negative territory in early trade, while the Nifty Smallcap 100 saw a marginal gain of 0.05 per cent.
Among sectoral indices, selling pressure was witnessed across most segments.
Nifty Auto slipped 0.02 per cent, Nifty IT lost 0.31 per cent, and Nifty Private Bank also declined by 0.31 per cent. On the other hand, some resilience was seen in select sectors as Nifty Media, Nifty PSU Bank, and Nifty FMCG posted small gains of 0.08 per cent each.
Vikram Kasat, Head Advisory at PL Capital, noted, "There is a tug of war between the bulls and the bears. Nifty is trading below the key hourly averages. Yesterday's high of 25,262 and low of 25,084 will be important levels to watch out for. A decisive break from this range can give us some clarity on the trend. The overall setup suggests that the Nifty should break the range on the upside. However, we shall wait for the confirmation."
Meanwhile, global cues also remained weak. US markets ended softer after comments from Federal Reserve Chair Jerome Powell. Powell stated that the Fed may move cautiously to lower interest rates as it seeks to balance risks in a softening market with persistent inflationary pressures.
"Near-term risks to inflation are tilted to the upside and risks to employment to the downside a challenging situation. Two-sided risks mean that there is no risk-free path," Powell remarked.
With domestic factors like FPI selling and global uncertainties weighing in, Indian equities continue to face turbulence. Investors are now closely watching corporate earnings data in the coming quarters to see if it can provide the much-needed trigger for recovery.
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