New Delhi: Indian stock markets opened modestly higher on Thursday after a week-long break between Christmas holidays. However, the initial gains were short-lived as continued market pressure weighed on investor sentiment, dimming hopes for a year-end rally.
By 11:15 AM, BSE Sensex Up just 37.30 points (0.05%), it traded at 78,510.17, while the Nifty 50 hovered around 23,756.80, a marginal gain of 29.15 points (0.12%).
Morning trading highlights
The Sensex opened at 78,877.12, marking an early gain of 404.25 points (0.52%), while the Nifty50 opened the day up 63.20 points (0.27%) at 23,790.85. This followed Tuesday’s moderate rally, where the Sensex closed up 164.10 points (0.21%) at 78,636.97. Nifty 63.20 points (0.27%) to end at 23,790.85.
Market pressure remains.
Analysts attribute the weak performance of the market to external and internal disturbances. A stronger US dollar and higher bond yields have forced foreign institutional investors (FIIs) to sell during rallies, while domestic concerns such as slowing economic growth and weak corporate earnings added to the pressure. is
“The relief rally seen yesterday is unlikely to be sustained. External factors such as a stronger dollar and higher bond yields, coupled with internal challenges, will yield gains in the near term,” Geojit Financial Services chief said. Investment Strategist VK Vijay Kumar said.
Among the sectoral indices, Nifty Auto, FMCG, IT, Media, and PSU Bank recorded gains, while other sectors traded in the red.
In the Nifty 50 pack, 31 stocks opened higher. Britannia, TCS, Tata Motors, Nestle India, and Hero Motors are among the top beneficiaries. On the other hand, 19 stocks declined, with JSW Steel, IndusInd Bank, and Shri Ram Finance among the losers.
Asian markets saw a mixed trend. Japan’s Nikkei 225 and South Korea’s KOSPI fell, while Taiwan’s weighted index, Hong Kong’s Hang Seng, and Indonesia’s Jakarta Composite rose slightly.
As the end of the year approaches, market experts advise a cautious approach. “Investors should prioritize safety over profits in the current context,” Vijay Kumar added, highlighting the dual impact of external and internal challenges on market sentiment.
With global and domestic pressures likely to persist, the outlook for a sustained rally is uncertain.