Indian Stock Markets Open Lower Amid Mixed Global Cues
Indian stock markets started Thursday’s trading session on a cautious note, reflecting mixed global signals. The BSE Sensex opened lower by 214.33 points, or 0.27%, at 77,934.16, while the Nifty fell by 55.25 points, or 0.23%, to open at 23,633.70. The decline comes as global markets are grappling with uncertainty surrounding the US economy, rising bond yields, and concerns over potential slower rate cuts by the Federal Reserve.
In the previous trading session on Wednesday, Indian markets saw a slight rebound from their lows, closing nearly flat. Market participants are now focusing on upcoming third-quarter earnings reports, which are expected to be key in determining the market’s direction. However, caution prevails due to slower economic growth forecasts, higher US bond yields, and the potential for tighter monetary policies by the American central bank.
Market expert Ajay Bagga pointed out that heavy selling by Foreign Portfolio Investors (FPIs) on Wednesday has led to increased volatility in Indian markets. He also noted that global markets are experiencing pressure from a strong US dollar, rising US bond yields, and growing uncertainty surrounding a potential economic fallout from a second term of the Trump administration. This situation is further exacerbating concerns over supply chains and trade networks globally.
As India’s earnings season kicks off post-market hours today, market sentiment remains cautious. Analysts believe that until more clarity emerges from corporate results and macroeconomic data, the near-term outlook for the Indian markets will remain subdued. Investors are advised to stay vigilant, keeping a close eye on global cues, domestic economic indicators, and developments surrounding interest rates and inflation.
Overall, while Indian markets have shown resilience in the past, the current economic uncertainties and geopolitical risks continue to pose challenges, prompting investors to adopt a wait-and-watch approach.
