Indian Stock Markets Open Flat Amid Global Pressure; Economic Data Weighs

Indian stock markets opened flat with minor dips due to weak U.S. economic data. Key indices Nifty 50 and BSE Sensex fell slightly. Experts warn of potential further declines based on upcoming U.S. payroll data. Sectoral indices showed mixed performances. Global markets also exhibited mixed trends.

Indian stock markets opened flat on Thursday, reflecting a marginal dip amid global market pressure stemming from weak economic data in the U.S. The Nifty 50 index recorded an initial dip of 52 points, or 0.2 per cent, to 25,093.35 points, while the BSE Sensex index fell by 0.04 per cent, or 30 points, starting the day at 82,171.64 points.

Experts underscored that stock markets are grappling with pressures as significant economic data, notably the U.S. monthly payroll data, is set to be released this week. A poor report could further destabilize markets. 'US Monthly Payrolls data day is here. Another poor report will raise chances for a 50 bps cut on Sep 18th. A strong report will limit expectations to a 25 bps cut,' said Ajay Bagga, Banking and Market Expert. 'US markets have seen outflows over the past two weeks, a trend we anticipate will continue as investors adopt a risk-off stance ahead of Sep 18th. Indian markets will derive direction from these global events, leading to volatility and weakness. Investors are expected to maintain light positions given the risk from the US Payrolls data later today.'

In the broader market on the National Stock Exchange, indices like Nifty Next 50, Nifty 100, Nifty 200, and others faced pressure during early trading. Sectoral indices such as Nifty Bank, Nifty Auto, and Nifty FMCG experienced selling pressure, while Nifty IT, Nifty Media, and Nifty Pharma saw gains. 'The Nifty 50 formed a small negative candle on the daily chart. The earlier downside gap from 4th September remains a significant resistance around 25,250 levels,' noted Varun Aggarwal, MD, Profit Idea. 'This technical pattern indicates a lack of market strength to clear this resistance, signaling potential further consolidation. The short-term trend for Nifty remains choppy with a bearish tilt.'

Globally, U.S. indices closed lower for the third consecutive day. The S&P 500 fell by 0.3 per cent to 5,503.41, the Dow Jones dropped by 0.54 per cent to 40,755.75, while the Nasdaq Composite edged up by 0.25 per cent to 17,127.66. Asian markets displayed mixed results; Japan's Nikkei 225 rose slightly by 0.05 per cent to 36,674, Korea's KOSPI declined by 0.95 per cent to 2,551, and the Asia Dow fell by 0.53 per cent to 3,475.36. China's Shanghai Composite saw a minor increase of 0.12 per cent to 2,792.

On Thursday, domestic indices finished the day lower due to selling pressure in select heavyweight stocks and negative global trends. The Sensex decreased by 151.48 points, closing at 82,201.16, while the Nifty 50 fell by 53.60 points, or 0.21 per cent, ending at 25,145.10 points. (ANI)

(With inputs from agencies.)