Indian Stock Markets Face Tussle: Bears on Edge Amid Weak Earnings

Indian stock markets opened flat on Friday as bears and bulls clashed. Nifty 50 and BSE Sensex showed minor gains but faced challenges from weak earnings, FPI outflows, and policy stances. Experts highlight the potential impact of the upcoming Union Budget 2025 and recent financial results on market stability.

The Indian stock markets opened with little change on Friday, as the ongoing struggle between bears and bulls continued, leaving the bears on alert. The Nifty 50 index commenced trading at 23,552.40 points, marking a modest increase of 25.90 points or 0.11%, while the BSE Sensex rose by 61.79 points or 0.08% to start at 77,682 points.

Market experts have expressed concerns about the current scenario, attributing it to risks overshadowing potential growth, mainly due to weak earnings and slowing economic growth in the country. They point out that the forthcoming Union Budget 2025 on February 1st and potential monetary policy easing could act as stabilizing factors. Market analyst Ajay Bagga told ANI, 'The market remains cautious with further declines expected unless fiscal actions in the Union Budget 2025 bring relief.'

Ajay Bagga further commented on the persisting issues affecting the Indian market, ranging from a sluggish economy and muted corporate earnings growth to FPI outflows and selling by promoters and PE funds. Despite these challenges, some sectors showed resilience, with Nifty IT gaining more than 2.65% after TCS's strong Q3 results. However, indices like Nifty BANK, Nifty Auto, and Nifty Media opened in red.

In terms of individual stocks within the Nifty 50 list, 17 emerged in green, while 33 faced declines. TCS led the gainers, surging by 4.20%, whereas Shriram Finance, IndusInd Bank, and others were top losers. Analysts like Axis Securities' Akshay Chinchalkar observe crucial support and resistance levels that could influence future market trends, emphasizing key financial zones for bears to target unless breached.

The report also noted mixed movements in Asian markets, with Singapore's Straits Times facing over 1.63% decline, while South Korea and Indonesia showed marginal gains. Overall, the markets remain in a cautious state, with critical eyes on upcoming economic events.

(With inputs from agencies.)