Mumbai (Maharashtra) [India], December 16 : Domestic stock markets continued to remain under pressure on Tuesday as both key benchmark indices opened in the red, weighed down by persistent foreign fund outflows and continued weakness in the rupee.
At the opening bell, the Nifty 50 index started the day at 25,951.50, slipping by 75.80 points or 0.29 per cent. The BSE Sensex also opened lower at 85,025.61, down by 187.75 points or 0.22 per cent.
Market participants remained cautious amid multiple global and domestic headwinds.
Experts said that apart from foreign institutional investors (FIIs) selling, pressure on the Indian currency is also impacting market sentiment. The rupee is hovering near record low levels around Rs 91/USD, adding to concerns among investors.
Ponmudi R, CEO of Enrich Money, "Indian markets are likely to open on a cautious note, tracking subdued global cues. Major equity indices on Wall Street closed lower amid a risk-off sentiment ahead of key economic data releases, including non-farm payrolls, retail sales, and inflation figures, which could influence the future course of monetary policy."
He further added, "Asian markets also opened lower, with cautious traders paring positions ahead of the Bank of Japan's crucial monetary policy decision later this week. On the domestic front, persistent FII outflows and continued pressure on the rupee near record lows remain key near-term headwinds".
The weakness was not limited to frontline indices alone. In the broader market, selling pressure was visible across segments. On the NSE, the Nifty 100 index was down by 0.32 per cent in early trade.
The Nifty Midcap 100 slipped 0.41 per cent, while the Nifty Smallcap 100 declined by 0.52 per cent at the opening session.
Sector-wise, most indices on the NSE were trading in the negative zone. The Nifty Auto index was down by 0.18 per cent, while the Nifty IT index saw a sharper fall of 0.83 per cent.
Nifty Pharma declined by 0.35 per cent, Nifty Private Bank was down by 0.46 per cent, and Nifty Realty slipped 0.59 per cent in early trade.
Vikram Kasat, Head Advisory, PL Capital, said, "Power Off US Tech stocks dropped, dragging three major indexes down with them as investors prepare for another wave of delayed economic data. This week's jobs data could be more important for equities perception of interest rate policy going forward than last week's FOMC meeting. Nifty 25850 is anticipated to cushion any shortcomings in the near period, followed by the sacrosanct support of 25700".
Overall, markets remain cautious as investors closely track global cues, currency movement, foreign fund flows, and upcoming economic data for further direction.
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor