After Tuesday's rally, the stock market is witnessing a flat opening Wednesday. The Sensex fell 124 points to open at 74,103. The Nifty fell 75 points to open at 22,460. The Bank Nifty opened at 50,487, down 24 points. In early trade today, the Nifty IT and Pharma sector stocks saw the most selling. During the trading session, shares of Polargrid, Nestle India, Mahindra, Hindustan Unilever, Asian Paints rose. While shares of TCS, Infosys, HCL Tech, Tata Steel fell.
The Indian stock market is eyeing the decisions of the Reserve Bank of India's Monetary Policy Committee, which will be held at 10 am today. All experts say that the Reserve can cut by 25 basis points. This step is considered important in terms of controlling inflation and encouraging economic activity. On the other hand, the global market remains volatile. The US has imposed tariffs of up to 104 percent on China and has started levying tariffs on 86 other countries. "China wants to make a trade deal, but it doesn't know how to start," said US President Donald Trump. This statement and the tariff action seem to be escalating the trade war situation.
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US market continues to fall
The impact of this tension was clearly visible on the US market. The Dow Jones fell 1,800 points from its high of the day to close 320 points lower, while the Nasdaq fell 350 points after fluctuating by about 1,300 points. The Dow has fallen by 4,600 points in four consecutive days. Similarly, the GIFT Nifty fell 275 points to 22,350, while Dow futures fell 650 points. There was also a big drop in the Asian market, where the Nikkei fell 1,000 points.
Despite yesterday's rally, FIIs sold shares worth a total of Rs 5,700 crore, including Rs 5,000 crore in the cash segment, while domestic institutional investors bought shares worth Rs 3,100 crore. Crude oil prices are also under pressure, falling below $61 per barrel for the first time in four years. Although the price of gold in the international market is below $3,000, the price of gold in the domestic market has increased by Rs 700 to Rs 87,700. Silver also closed at Rs 88,900, up by Rs 300.