Indian Markets Open Flat Amid Bear-Bull Tussle, Await Union Budget 2025

Indian stock markets opened flat as the bear-bull battle continues. Despite Nifty 50 and Sensex showing slight gains, the market remains under risk due to weak earnings and slow growth. Analysts anticipate that February's Union Budget 2025 and potential monetary policy easing might stabilize the situation.

On Friday, India's stock markets opened flat, reflecting the ongoing tug-of-war between bears and bulls. The Nifty 50 index started the day at 23,552.40 points, marking an increase of 25.90 points or 0.11%, while the BSE Sensex inched up by 61.79 points or 0.08% to 77,682 points.

Market analysts expressed caution regarding the economic climate, citing weak corporate earnings and sluggish growth as prevalent challenges. However, the forthcoming Union Budget 2025 on February 1st and potential monetary policy easing could provide much-needed support. Banking and Market expert Ajay Bagga mentioned, "With the global and domestic scenario leaning more towards 'risk off,' markets are on a gradual downward trajectory. We remain vigilant and foresee potential declines unless fiscal measures are introduced in the Union Budget 2025 and monetary policy is promptly eased."

Bagga further highlighted several factors contributing to the market's current state: a slowing economy, muted corporate earnings growth, continuous foreign portfolio investor outflows, promoter and private equity fund sell-offs, a lack of substantial fiscal impulses, and an overtight monetary policy stance. Today's quarter 3 earnings reports will see key announcements from companies such as Just Dial, PCBL, and Equinox India Development.

In sectoral performance, Nifty IT rose over 2.65% after TCS announced a 12% profit growth and a 5.6% revenue increase in the Oct-Dec quarter. Conversely, other indices like Nifty BANK, Nifty Auto, and Nifty Media struggled, opening in red. Of the Nifty 50 stocks, 17 began in green, while 33 dipped, and one remained unchanged. TCS emerged as the top performer with a 4.20% increase, followed by Tech Mahindra, Wipro, Infosys, and HCL Tech, whereas Shriram Finance, IndusInd Bank, Hindalco, BEL, and NTPC led the laggards.

According to Akshay Chinchalkar, Head of Research at Axis Securities, Thursday's "tweezer bottom" candle formation underscores the significance of support at 23,500. However, with the index closing below 23,583, bears seem to have the upper hand, setting resistance at 23,821 as a primary obstacle. Bears will likely target the 23,238 - 23,355 zone unless this resistance is overcome. Meanwhile, in other Asian markets, movement was subdued apart from Singapore's Straits Times, which fell by over 1.63%. Japan's Nikkei 225 decreased by 0.49%, Hong Kong's Hang Seng index by 0.22%, and Taiwan Weighted by 0.03%, while South Korea's index saw a modest gain of 0.10%, and Indonesia's Jakarta Composite rose by 0.56%.

(With inputs from agencies.)