Mumbai (Maharashtra) [India], January 23 : Indian stock markets opened on a subdued note on Thursday as selling pressure pushed indices into the red.
The Sensex began the trading day 175.15 points down at 76,229.84, while the Nifty saw a decline of 51.20 points, opening at 23,104.15.
The market breadth was predominantly negative among Nifty 50 companies, with 10 stocks advancing, 40 declining, and 1 remaining unchanged. This imbalance reflected weak investor sentiment amid broader economic and global concerns.
In early trading, Ultra Cement, Wipro, TCS, Grasim, and Infosys emerged as the top gainers, offering some optimism to an otherwise tepid start. Meanwhile, Hindustan Unilever, Nestle India, SBI, L&T, and BPCL led the list of top losers, underscoring the bearish mood.
Ajay Bagga, a banking and market expert, shared insights on the broader market dynamics. Speaking about India's position in global investor sentiment, he said, "India remains one of the most underweight markets as per a recent Global Investors Survey by a major foreign brokerage house. The expectations are low going into the Union Budget 2025, with many analysts citing the lack of fiscal space as the primary cause for the lack of a durable fiscal stimulus."
Bagga also highlighted the absence of a pre-budget rally, attributing it to dwindling investor confidence and stated, "There has been no pre-budget rally and the markets have given up all gains made since the declaration of the results of the National Elections in June 2024. US exceptionalism continues and Asian markets are following the lead. The Bank of Japan rate hike expected on Friday is a well-transmitted rate hike that will not surprise the markets.".
Adding to market uncertainty, Bagga pointed to the anticipated Bank of Japan rate hike on Friday, which, he suggested, might further affect investor sentiment.
"However, a residual, late cycle impact on the Yen carry trade could lead to further selling in stock markets post the rate hike. With 10 days to go for the Union Budget, the lack of any sentimental boost for the markets points to really low expectations amongst investors. This reflects the slowing economy, the muted corporate earnings and the lack of any counter-cyclical policy initiative on either the fiscal or monetary fronts," he noted.
Factors such as a slowing economy, muted corporate earnings, and the absence of counter-cyclical policy measures have further dampened expectations. Bagga observed that the lack of any substantial fiscal or sentimental boost underscores the challenges faced by the markets.
As domestic and global factors continue to weigh on investor confidence, market participants are expected to remain cautious in the lead-up to key developments, including the Union Budget and global monetary policy decisions.
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