Indian stock markets opened on a cautious note on Thursday, with the Nifty 50 and Sensex showing only modest gains in early trade as market participants opted for a breather after the strong rally earlier this week.
The Nifty 50 index opened flat at 24,694.45, registering a gain of 27.55 points or 0.11 per cent, while the BSE Sensex started the session at 81,354.43, up by 23.87 points or 0.03 per cent.
Market analysts observed that the recent inflows from Foreign Portfolio Investors (FPIs), which had bolstered the recent uptrend, appear to be reversing amid changing global sentiment. Experts suggest that the markets might now lean towards a 'Sell India, Buy China' trend in the near term, though some consolidation could still be observed in the short run.
"Markets have had a good run this week with the US-China trade deal and then softer-than-estimated US CPI leading to a sharp recovery in the US markets. This got translated into a global risk-on rally. That seems to be running out of steam for now with the hunt on for new catalysts in the form of US tax cuts package or passage of the US debt ceiling legislation," banking and market expert Ajay Bagga said.
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He further noted, "Markets are looking a tad tired today with Asian markets opening lower and European futures also mildly lower. India should see a positive open but the heavy lifting is being done by Indian retailers rather than the FPIs or DIIs. The net short position of FPIs reduced slightly."
Sectoral performance remained mixed in early trade, with all indices except Pharma and PSU Bank shares trading in the green. The Nifty PSU Bank index surged by 0.26 per cent, while Nifty Auto shares remained flat but in positive territory.
On the Nifty 50 index, JSW Steel, Tata Motors, and Hero MotoCorp emerged as the top gainers in early trade. In contrast, IndusInd Bank, Dr. Reddy's Laboratories, and ONGC opened as the top losers.
Investors are also closely monitoring the quarterly earnings for the financial year ended March 2025, with several major companies, including JSW Energy, PB Fintech, Patanjali Foods, Abbott India, Tube Investments of India Ltd, Page Industries, Godfrey Phillips India, Cochin Shipyard, ITC Hotels, Kaynes Technology India, Godrej Industries, and LIC Housing Finance, scheduled to release their fourth-quarter results today.
Meanwhile, other major Asian markets faced pressure. Japan's Nikkei 225 was down by 1.12 per cent, South Korea's KOSPI fell by 0.32 per cent, and Hong Kong's Hang Seng index declined by 0.17 per cent. Taiwan's Weighted Index remained flat with a slight gain of 0.06 per cent, while Indonesia's Jakarta Composite surged by 1.2 per cent at the time of this report.
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