Mumbai (Maharashtra) [India], November 26 (ANI): The pressure in the Indian stock market continued on Wednesday as both the benchmark indices opened in the red, weighed down by persistent selling by foreign investors.
However, shortly after the opening, the markets recovered and moved back into the green with marginal gains, taking positive cues from other global markets.
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The Nifty 50 index opened at 25,842.95, registering a decline of -41.85 points or (-0.16 per cent). The BSE Sensex began the session at 84,503.44, down -83.57 points or -0.10 per cent from its previous close.
Market experts noted that foreign portfolio investors continue to maintain a strong short position.
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Ajay Bagga, Banking and Market Expert, told ANI, “Indian markets start the December series with FPIs at a net 85 per cent short position, however they have reduced the magnitude of the shorts. The US-India trade deal remains the one catalyst that could help the Indian markets break through the resistance provided by the 2024 record highs which have not been breached on a closing basis yet. The RBI MPC meet on Dec 5th will be watched closely for a possible monetary stimulus via a rate cut. Overall, we expect a positive open for the markets but the key will be follow-through buying which has been lacking in the past few weeks of market consolidation.”
In the broader market on the NSE, the Nifty 100 gained 0.28 per cent, Nifty Midcap was up 0.35 per cent, and Nifty Smallcap rose 0.45 per cent during the opening session.
Among sectoral indices, early gains were seen across segments. Nifty Auto was up 0.42 per cent, Nifty Media gained 0.46 per cent, Nifty Metal surged 0.86 per cent, Nifty PSU Bank gained 0.53 per cent, and Nifty FMCG inched up 0.19 per cent.
Ponmudi R, CEO, Enrich Money, said, “Nifty 50 remains well-supported above its 20-day EMA at 25,841, a trend anchor that has held steady for nearly two months. Despite yesterday’s mild decline to 25,884, the broader structure stays bullish as long as the index holds above 25,841-25,850. With Gift Nifty indicating a 200+ point gap-up, Nifty is set to open directly above yesterday’s supply zone of 26,000-26,050. If the opening strength sustains, the next resistance zones to watch are 26,130, followed by 26,250-26,300, which remain the key upside targets”.
Global cues were also supportive. Despite a decline in Nvidia, US markets gained on Tuesday on rising expectations of a rate cut in December. Weak retail sales and weak private payrolls data strengthened the case for a possible Fed rate cut on December 10th.
The Dow, S&P 500, and Nasdaq closed with gains of 1.4 per cent, 0.9 per cent, and 0.7 per cent, respectively. Falling US VIX and lower trading volumes ahead of the Thanksgiving holiday added to the positive sentiment, while markets priced in an 85 per cent probability of a rate cut.
Asian markets followed the US lead, with key indices in Australia, South Korea, and Japan trading in the green during early hours on Wednesday. (ANI)
(The above story is verified and authored by ANI staff, ANI is South Asia’s leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)
