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Stock Indices Open With Neutral-To-Negative Stance Amidst Global Uncertainty

09:55 AM May 09, 2024 IST | 8PM News Desk
stock indices open with neutral to negative stance amidst global uncertainty
Stock indices open with neutral-to-negative stance amidst global uncertainty

Mumbai : The stock indices opened Thursday with a neutral-to-negative stance, influenced by mixed cues from global markets. The Sensex was down by 22.35 points, opening at 73,444.04, while the Nifty was 12.75 points down, opening at 22,289.75.

Among the Nifty companies, Hero MotoCorp, M&M, Bajaj-Auto, HCL Technologies, and SBI were the top gainers, whereas LT, HDFC Life, BPCL, Asian Paints, and Tech Mahindra were the top losers.

Ajay Bagga, banking and market expert, commented on the market situation, stating, "India Vix has moved up every day for the last 10 days, rising 67 per cent over this period.

Markets are very volatile, and sustained FII selling in secondary markets is a negative for the Indian markets. Expect such sideways and range-bound trading in the absence of any domestic triggers. Good earnings announcements are seeing very strong up moves, while any miss on estimated earnings is getting punished by the markets."

He added, "This is typical of elevated markets with a political uncertainty overhang. That will not disperse till clarity emerges on the 4th of June with the Lok Sabha election results announcement. This uncertain period of 27 days will have to be borne by investors. We are still looking at this as a structural bull market and expect a strong rally in June as the political uncertainty gets addressed."

Notably, the market showed indications of forming a higher bottom around the 22,200 level, potentially signalling a short-term upward movement.

In Asian markets, bond prices declined, mirroring the trend observed in Treasury bonds, which bolstered the dollar. Equities in the region displayed mixed performance after a subdued trading session on Wall Street.

Japanese bond yields rose following a hawkish tone in the summary of opinions from the Bank of Japan's April meeting, with discussions centred on the possibility of reducing bond purchases and future rate hikes.

The yen remained relatively stable, albeit concerns about a new Asian currency war surfaced.

In the US, futures slightly dipped after the S&P 500 and Nasdaq 100 indexes closed nearly unchanged, influenced by losses in large-cap stocks.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Investors are closely monitoring economic data releases in Asia, including China's April trade data and potential updates on new lending and money supply figures. Inflation figures expected next week will offer further insights into the US economy, particularly after recent data indicated a cooling labor market."

Meanwhile, in commodities, West Texas Intermediate recorded its most significant gain in nearly two weeks, supported by the Biden administration's decision to increase prices for refilling emergency oil reserves. Gold prices remained stable around USD 2,309 per ounce.

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