NEW DELHI: Indian stock markets opened marginally higher on Thursday after a mid-week break for the Christmas holiday. However, the initial gains were short-lived as persistent market pressures weighed on investor sentiment, dimming hopes for a year-end rally.
By 11:15 am, the BSE Sensex traded at 78,510.17, up just 37.30 points (0.05%), while the Nifty50 hovered around 23,756.80, a modest gain of 29.15 points (0.12%).
Morning trade highlights
The Sensex opened at 78,877.12, marking an initial rise of 404.25 points (0.52%), while the Nifty50 began the day at 23,790.85, up by 63.20 points (0.27%). This followed Tuesday’s moderate rally, where Sensex closed at 78,636.97, up 164.10 points (0.21%), and Nifty finished at 23,790.85, gaining 63.20 points (0.27%).
Market pressures persist
Analysts attribute the market’s subdued performance to external and internal headwinds. The strong US dollar and high bond yields have led Foreign Institutional Investors (FIIs) to sell during rallies, while domestic concerns such as slowing economic growth and weaker corporate earnings have added pressure.
“The relief rally witnessed yesterday is unlikely to sustain. External factors like the strong dollar and high bond yields, combined with internal challenges, will cap gains in the near term,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among sectoral indices, Nifty Auto, FMCG, IT, Media, and PSU Bank recorded gains, while other sectors traded in the red.
In the Nifty50 pack, 31 stocks opened higher. Top gainers included Britannia, TCS, Tata Motors, Nestle India, and Hero Motors. On the other hand, 19 stocks declined, with JSW Steel, IndusInd Bank, and Shriram Finance leading the losses.
Asian markets showed a mixed trend. Japan’s Nikkei 225 and South Korea’s KOSPI traded lower, while Taiwan’s Weighted Index, Hong Kong’s Hang Seng, and Indonesia’s Jakarta Composite posted marginal gains.
As the year-end nears, market experts advise a cautious approach. “Investors should prioritise safety over returns in the current context,” added Vijayakumar, 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 remains uncertain.