Market Follows Global Cues; Nifty, Sensex Open In Negative Zone

Domestic stock market took a cue from global markets and declined at the opening session on Wednesday, with both indices opening in negative territory.

The Nifty 50 index plummeted 0.75 per cent, or 189 points, to open at 25,089.95 points, while the BSE Sensex lost 703 points at the opening, down 0.85 per cent, to open at 81,851.82 points.

Stock markets globally faced pressure after the US markets declined amid uncertainty before the Fed rate cuts, dropping more than 2 per cent on Tuesday.

“Seasonality caught up with markets on Tuesday as US markets fell sharply, with Nvidia creating the record for the maximum market cap loss for a stock in a single trading session ever. Asian markets on Wednesday are following the US lead, with cuts of 3 per cent. The September Effect, where in September is historically one of the poorest performing months, is solidly in place,” said Ajay Bagga, Banking and Market Expert.

In the broad market indices on the National Stock Exchange, all indices opened with losses, including Nifty Next 50, Nifty 100, Nifty Midcap 50, and Nifty Smallcap 100.

The sectoral indices on NSE, the Nifty PSU Bank index opened as the highest loser with a decline of 1.44 per cent, followed by Nifty Metal, which opened with a decline of 1.28 per cent.
 

In the Nifty 50 stocks list, 2 stocks opened with gains while 46 opened with declines, and 2 remained unchanged, marking selling pressure.
 

The experts also pointed out that this volatility, due to weak economic data, an aggressive Bank of Japan and falling commodity prices.

“Throughout the day on Tuesday, the market hovered between 25,235 and 25,320. The daily chart showed a small candle, indicating indecision between bulls and bears. It seems the market is currently non-directional, and traders may be waiting for a breakout on either side. For day traders, 25,350 is the immediate breakout level, with a potential rise to 25,450 to 25,500 if surpassed,” said Shrikant Chouhan, Head Equity Research, Kotak Securities.
 

In the global markets, the US Index S&P 500 declined by 2.12 per cent, while Nasdaq lost 3.26 per cent.
 

The European markets also faced pressure, with Germany's DAX declining by 0.98 per cent, the French market index CAC losing 0.94 per cent, and the UK's FTSE index losing 0.79 per cent.

Asian markets on Wednesday, Japan's Nikkei index tanked more than 3.31 per cent, or 1,280 points, while Taiwan's Taiwan Weighted plummeted 3.47 per cent. All major Asian stock indices sustained losses on Wednesday following the global decline. South Korea's KOSPI also lost 2.24 per cent. (ANI)