Indian stock markets opened flat on Wednesday as the monthly and quarterly expiry date approaches, though experts noted that the markets are still in bull mode.
The Nifty 50 index opened at 25,899.45 points, with a dip of 40.95 points or 0.16 per cent, while the BSE Sensex index declined by 77 points at the opening session to 84,836.45 points, down by 0.09 per cent.
"Given the monthly/quarterly expiry on Thursday, we expect volatile, flat markets in India as the September series ends with markets near to or at all-time highs. The next catalyst for markets will be the US PCE data on Friday and the September US jobs report that will be out on October 4th. Post that, the RBI MPC decision on Oct 9th will be key for Indian markets trajectory. For now, we remain fully invested and counsel regular investment at every dip as we see a decades long bull market in India ahead" said Ajay Bagga, Banking and Market Expert.
In the stock market, an expiry day is the last day that financial contracts, like futures and options, can be traded. This is the deadline for traders to close their positions, and if they don't, the contract may be automatically executed, or penalties may apply.
In the sectoral indices on the National Stock Exchange, the Nifty metal index emerged as the leader in gains with a surge of 0.84 per cent at the opening session, while the Nifty Bank, Nifty Auto, and Nifty IT opened with a marginal dip.
In the Nifty 50 list, 23 stocks opened with advances, while 18 shares declined in the opening session.
"The gush of domestic liquidity, which is the main driving force behind the rally in India, is likely to keep the market resilient. If Nifty is to go past 26000 decisively and sustain there, it has to be led by the Bank Nifty.
There is more steam in this segment" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further stated that "The Chinese monetary stimulus measures lifted the Chinese and Hong Kong markets yesterday and if the rally continues it is possible that FIIs will move more funds to invest in these markets which are highly attractive on valuations. In India metal stocks rallied in response to the Chinese stimulus measures".
In the Asian markets on Wednesday, Japan's Nikkei index was up with marginal gains of 0.07 per cent, while Hong Kong's Hang Seng rallied by 2.03 per cent, along with Taiwan's index, which surged by 1.30 per cent. South Korea's markets were flat at the time of filing this report. (ANI)
