Indian stock market opens flat amid stable institutional investments
The domestic benchmark indices opened flat on Friday amid negative Asian cues, as selling was seen in the IT and auto sectors in the early trade.
Stable institutional flows — both FII and DII — are keeping the market steady even in the absence of positive triggers. The ongoing consolidation phase is likely to continue in the near-term, according to analysts.
At around 9.29 am, Sensex was trading 11.77 points or 0.01 per cent up at 81,644.79 while the Nifty added 13.20 point or 0.05 per cent at 24,846.80.
Nifty Bank was up 81.20 points or 0.15 per cent at 55,627.25. The Nifty Midcap 100 index was trading at 57,707.65 after rising 250.40 points or 0.44 per cent. Nifty Smallcap 100 index was at 17,927.15 after climbing 37.75 points or 0.21 per cent.
According to analysts, the Nifty posted a smart recovery in the final minutes of trading on Thursday, after spending most of the first half in the red.
"Although the Nifty is still caught in a sideways market defined by the 24,462 and 25,116 range, yesterday's rebound traced a long lower shadow and a small real body that was closer to the day's high, and that's a bullish sign. Immediate support and resistance lie at 24677 and 25000 respectively," said Akshay Chinchalkar, Head of Research at Axis Securities.
Meanwhile, in the Sensex pack, Infosys, Tech Mahindra, HCL Tech, Bajaj Finance, IndusInd Bank, Bharti Airtel, Titan and Hindustan Unilever Limited were the top losers. Whereas, Adani Ports, Eternal, Maruti Suzuki and Sun Pharma were the top gainers.
In the Asian markets, Hong Kong, Bangkok, Seoul, China and Japan were trading in the red.
In the last trading session, Dow Jones in the US closed at 42,215.73, up 117.03 points, or 0.28 per cent. The S&P 500 ended with a gain of 23.62 points, or 0.40 per cent, at 5,912.17 and the Nasdaq closed at 19,175.87, up 74.93 points, or 0.39 per cent.
'Investors should understand two distinct big trends that will weigh on markets: One, India's macros are strong and improving. Two, this positive trend in macros is not getting reflected in corporate earnings," said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.
This is the fundamental reason for the range-bound movement of the market.
On the institutional front, foreign institutional investors (FIIs) were net buyers as they bought equities worth 884.03 crore on May 29, while domestic institutional investors (DIIs) purchased equities worth 4,286.50 crore.
According to market watchers, steadily improving macros like resilient GDP growth, down trending inflation and interest rates and declining fiscal and current account deficits lay the foundation for a strong economy and earnings recovery in the medium term.
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Mint
an hour ago
- Mint
Vijay L Bhambwani's Ticker: Retail traders show signs of aggression
Dear reader, Last week, I wrote that Japanese economic tremors could impact domestic market sentiments even though the US downgrade by Moody's would not. That hypothesis was validated by the markets as the Nifty slipped mildly, even as the Bank Nifty gained marginally. The Reserve Bank of India (RBI) will announce its decision on interest rates on Friday, keeping banking stocks buoyant. Bankers expect a rate cut after the policy meeting. Do remember that the banking and financial sector stocks command a weightage of 37.74% in the Nifty 50. This sector is single-handedly responsible for swaying the broader markets with itself. Which is why it is known as the 'swing sector" by systems traders. Should the RBI cut coupon rates by up to 0.25%, the markets may take it in their stride. As I wrote last week, any cut of 0.50% or higher will be a negative development from the point of cash carry trade considerations. Banking stocks hold the key to the near-term future trend of the markets. Big money is likely to continue pushing interest rate-sensitive stocks higher ahead of the RBI announcement on Friday, cushioning the downside. As I wrote in last week's column, the market was preoccupied with the derivatives expiry process, and volatility remained above average. Sector-wise analysis shows public sector undertakings (PSUs) stocks remaining in the limelight this week, too. Oil and gas stocks will see hectic activity, as the Organization of the Petroleum Exporting Countries Plus (Opec+) has announced output hikes, and lower prices should enthuse inflation hawks. Industrial metal prices witnessed the routine month-end spikes and are likely to see higher levels meeting resistance from sellers. That means stock prices of metal mining stocks may also see limited upside potential. Oil and gas prices are likely to remain under pressure, too, as higher levels are encountering selling pressure. The recent narrative that was in force of a shortage of natural gas prices has been replaced by a new hypothesis that the markets are actually well supplied. This has been my view for many quarters. Welcome to the oil and gas markets—also known as 'widow makers." The level of dis-information protocols (DIP-ping) is the highest amongst all asset classes. Bullion remains a long-term bullish story, and delivery-based investors should sit tight on their holdings. Look beyond 2025, if not further. Fixed-income investors should keep the powder dry and wait for the RBI decision on Friday before making their next move. Analysis of the margin-funded trading data shows that retail segment borrowings from brokers for investing in stocks reached their highest level after the end of January 2025. This shows retail aggression is on the rise, which is a double-edged sword. The retail segment is the most emotional segment of the market and also the weakest financially. Retailers tend to surrender their positions if negative news emerges, resulting in crowded exits. Continue to trade with protective stop losses and tail risk (Hacienda) hedges in place. A tutorial video on tail risk (Hacienda) hedges is here - Rear View Mirror Let us assess what happened last week so we can gauge what to expect in the coming week. The broad-based Nifty fell, whereas the Bank Nifty gained mildly. The US dollar index gained mildly and triggered profit taking in bullion. Oil fell, and gas rose. Much of the gains in gas prices are due to the cost of carry (rollover/financing charges). The rupee weakened versus the dollar, which made bulls slightly nervous. Indian bond yields were steady ahead of the RBI meeting. The NSE gained 0.53% in market capitalisation, which shows broad-based buying and some optimism. Market-wide position limits (MWPL) fell routinely on expiry. US markets rallied and provided tailwinds to our markets. Retail Risk Appetite I use a simple yet highly accurate yardstick for measuring the conviction levels of retail traders—where are they deploying money? I measure what percentage of the turnover was contributed by the lower and higher risk instruments. If they trade more of futures, which require sizable capital, their risk appetite is higher. Within the futures space, index futures are less volatile compared to stock futures. A higher footprint in stock futures shows higher aggression levels. Ditto for stock and index options. Last week, this is what their footprint looked like (the numbers are the average of all trading days of the week) – The high-risk, high-volatility, and capital-intensive future segment saw higher turnover as traders rolled over their trades to the next derivatives cycle, resulting in dual turnover being reported. Turnover fell uniformly in the relatively lower-risk options segment. 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