Sensex opens flat, Nifty below 24,800; Tech Mahindra shares down 1%
Benchmark stock market indices opened marginally lower, tracking global developments on Thursday. The US Fed maintained key lending rates, while the Israel-Iran conflict continues to weigh in on investors. IT sector stocks fell in early trade, dragging markets down.The S&P BSE Sensex was down by 225.26 points to 81,219.40, while the NSE Nifty50 lost 56.75 points to 24,755.30 as of 9:21 am.advertisementDr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited, said that the 24500-25000 range for the Nifty is likely to hold till news from the Israel-Iran conflict change for the better or for the worse.
"If news of deescalation of tensions break, Nifty will break out of the upper band of the range. If the news is about escalation of tensions, particularly relating to troubles in the strait of Hormuz resulting in sharp spike in crude, it would be difficult for Nifty to hold on to the 24500 support level. So watch out for the developments in West Asia," he added.Titan led the early gainers with a 0.68% jump, followed by Tata Motors up 0.66%, Kotak Mahindra Bank gaining 0.47%, Mahindra & Mahindra rising 0.35%, and Bajaj Finserv adding 0.23%.advertisementOn the losing side, Tech Mahindra dropped 1.63%, Infosys fell 1.01%, HCL Technologies declined 0.75%, IndusInd Bank was down 0.60%, and Adani Ports slipped 0.58%.Auto and banking stocks showed early strength while IT companies faced selling pressure as markets opened for Thursday's session.The Fed decision and commentary have come on expected lines. Jerome Powell's comment that ' despite heightened uncertainty the economy is in solid position ' is important. However, he has warned that 'tariff effects on inflation can be persistent'. Therefore, it would be realistic not to expect rate cuts from the Fed immediately. The dot plot, however, indicates two rate cuts in 2025. With only 1.4% GDP growth expected this year, the US is unlikely to attract a lot of capital flows. This is favourable for India. But since Indian market valuations remain a concern, sustained rally will happen only when we get indications of sustained earnings growth, which is some time away.
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