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Stock Market Opens In The Red Amidst Global Uncertainties

10:02 AM Jan 25, 2024 IST | 8PM News Desk
stock market opens in the red amidst global uncertainties
Stock market opens in the red amidst global uncertainties

Mumbai (Maharashtra) [India] : The stock market commenced the trading day on a cautious note as both the BSE Sensex and NSE Nifty opened in the red.

The Sensex observed a dip of 169.18 points, initiating the day at 70,891.13, while the Nifty recorded a decline of 40.40 points, starting at 21,413.55. The early market activity reflected the prevailing uncertainties in the global economic landscape.

Within the Nifty index, a mixed picture emerged, with 22 companies advancing and 27 declining. Notable gainers among the Nifty firms included Coal India, Bajaj Auto, Adani Ports, Adani Enterprises, and Hero Motoco. On the flip side, Tech Mahindra, HCL Technologies, Tata Steel, LTIMindtree, and Cipla were among the top losers.

In contrast to Wednesday’s positive momentum, the NSE Nifty 50 and BSE Sensex both witnessed a marginal decline at the opening bell.

The Nifty 50 started with a 0.03 per cent decrease, launching at 21,447.95, and the Sensex mirrored this trend with a 0.03 per cent dip, commencing at 71,042.28.

Despite the recent market volatility, Wednesday saw a positive reversal in the Indian stock indices, breaking a two-day downward streak.

The Sensex surged by 0.98 per cent, gaining 689.76 points to close at 71,060.31, while the Nifty 50 climbed 1.01 per cent, settling at 21,453.95.

Varun Aggarwal, founder and managing director, Profit Idea, said, ‘Technical analysis indicates a bullish Piercing line candle pattern, suggesting caution for short positions amid the ongoing negative pattern of lower tops and bottoms’.

He added, ‘While the Nifty is approaching the formation of a new lower top, potential resistance is anticipated around 21,500-21,600 levels. On the hourly chart, signs of a reversal are evident, but the index closed below the critical 21,500 resistances.

A decisive breach of this level could trigger a substantial rally, with support expected at 21,400-21,350.

Across the Asia-Pacific region, market movements vary, with the Asia Dow up by 0.46 per cent, Japan’s Nikkei 225 down by 0.31 per cent, Hong Kong’s Hang Seng index lower by 0.16 per cent, and China’s Shanghai Composite up by 0.48 per cent.

In the commodities market, WTI crude prices stand at USD 75.15, reflecting a modest 0.08 per cent increase, while Brent crude is at USD 80.19, up by 0.19 per cent.

Iron ore futures show an upward trajectory, spurred by the People’s Bank of China’s decision to cut the reserve requirement ratio. This has led to a 2.11 per cent increase in the most traded May iron ore contract on the Dalian Commodity Exchange.

Gold prices remain subdued near a one-week low due to a strengthening U.S. dollar and rising bond yields following robust U.S. business activity data. In the U.S. stock market, the S&P 500 reached a record high of 4,868.55, driven by a rally led by Netflix shares.

Meanwhile, the Nasdaq Composite gained 0.36 per cent at 15,481.92, and the Dow Industrial Average fell 0.26 per cent to 37,806.39.

As market participants navigate through evolving trends, they face the challenge of balancing potential bullish signals with lingering uncertainties in the global economic landscape.

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