On Thursday, Indian stock markets faced renewed selling pressure after a brief recovery in the previous session, largely due to ongoing outflows from foreign investors that dampened market sentiment. Both of the nation’s primary indices opened lower, reflecting a downturn across most sectors, although certain segments, notably metals and public sector banks, did manage to perform well.
The Nifty 50 index commenced trading at 24,759.55, marking a decrease of 76.75 points or 0.31 percent. Simultaneously, the BSE Sensex opened at 80,684.14, declining by 299.17 points or 0.37 percent. The broader market displayed mixed results, with the Nifty 100 slipping by 0.20 percent, the Nifty Midcap 100 rising slightly by 0.14 percent, and the Nifty Small Cap 100 hovering in positive territory with a minimal gain of 0.02 percent.
Sector-wise, early trading on the National Stock Exchange (NSE) witnessed pressure on indices such as FMCG, IT, media, and real estate, while the auto sector remained largely unchanged. Conversely, shares in the metals and public sector banking sectors emerged as significant gainers, providing some much-needed support to the overall indices.
In the commodities market, gold continued its impressive upward trajectory, achieving new record highs for the seventh consecutive week. This bullish trend has caught the attention of analysts and investors alike.
Manav Modi, an analyst specializing in precious metals at Motilal Oswal Financial Services, commented, “Gold has remained stable and is on track for its seventh straight weekly gain, driven by expectations of further interest rate reductions by the U.S. this year, along with concerns surrounding the implications of a potential U.S. government shutdown. On the other hand, silver experienced some profit-taking after reaching an all-time high in domestic markets and a 14-year peak on the COMEX.”
On the international front, apprehensions escalated as the U.S. government shutdown entered its second day on Thursday. This situation could result in postponed releases of crucial economic indicators, including the non-farm payrolls report and unemployment rates—data that investors closely monitor. Analysts suggest that with the shutdown ongoing, the timely release of labor statistics is increasingly unlikely, adding further uncertainty to market forecasts.
Domestically, the markets had rebounded sharply on Wednesday, breaking a streak of eight consecutive days of decline. This recovery offered a glimmer of hope to investors who had been concerned about the prolonged downturn.
Shrikant Chouhan, the Head of Equity Research at Kotak Securities, observed, “The daily charts illustrate that the market has formed a significant bullish candle coupled with a reversal pattern, which indicates potential for an upward trend from current levels. We believe that 24,800/80,800 and 24,700/80,500 are critical support levels for day traders. As long as the market remains above these thresholds, a pullback trend is likely to continue. On the upside, it could advance to levels of 24,950-25,000/81,300-81,500, with further increases possibly taking the market to 25,075/81,700. However, if it falls below 24,700/80,500, market sentiment may shift significantly.”
In the broader Asian markets, Japan’s Nikkei 225 index saw a notable increase of 1.46 percent, while Taiwan’s weighted index also rose by 0.98 percent. However, Hong Kong’s Hang Seng index faced a decline of 0.95 percent, reflecting the mixed signals from regional markets.
