Indian Bourses Open with Pressure: Global Factors Weigh In

The Indian stock market indices experienced selling pressure at the opening, with both Nifty 50 and BSE Sensex showing marginal dips. While domestic buying supported the market, elevated valuations limit gains. Sectoral indices mostly turned negative, as global funds moved to China, adding a downward bias.

The Indian stock market indices faced selling pressure at the opening bell on Wednesday, with both major indices showing marginal declines. The Nifty 50 index dipped by 48.80 points, or 0.19 percent, landing at 25,008.55 points. The BSE Sensex dropped 173 points, or 0.21 percent, opening at 81,646 points.

Analysts noted the ongoing selling by Foreign Institutional Investors (FIIs), countered by steady domestic investor buying, as a factor that may consolidate the Nifty index around the 25,000 mark. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated, "The main driver of the bull run has been sustained domestic inflows, absorbing the FII selling. These domestic flows will continue to support the market, but elevated valuations will limit the upside. The Nifty is expected to consolidate around 25,000, with Q2 earnings likely weak except in IT, banking, and parts of the auto sector."

Among the sectoral indices on the National Stock Exchange, most opened in the negative, except for Nifty Pharma, Nifty Realty, and Nifty Consumer Durables. Within the Nifty 50, 17 stocks opened with gains, while 31 saw declines, and 2 remained unchanged.

Shriram Subramanian, Founder and Managing Director of InGovern Research Services, commented, "Markets will continue to exhibit sluggishness with a downward bias as global investors redirect funds to China. The Hyundai IPO's overhang will persist, and Reliance Industries' results may add further pressure." Meanwhile, other Asian markets showed mixed trends, with Japan's Nikkei dropping over 2 percent, Hong Kong's Hang Seng edging up 0.4 percent, South Korea's KOSPI down 0.5 percent, and Taiwan's Weighted index declining by 0.6 percent at the time of reporting.

(With inputs from agencies.)