Why Did Sensex and Nifty Open Marginally Lower Today?

Synopsis
Key Takeaways
- Sensex and Nifty opened lower due to mixed global cues.
- Concerns over FII outflows are influencing market sentiment.
- Upcoming Q2 corporate earnings are highly anticipated.
- Immediate resistance levels are at 25,100 and 25,250.
- Ongoing reforms in India could boost future market growth.
Mumbai, Sep 25 (NationPress) The Indian benchmark indices opened slightly lower on Thursday, as ongoing volatility and mixed global cues continue to impact investor sentiment.
As of 9:25 am, the Sensex fell by 91 points, or 0.11 percent, to reach 81,807, while the Nifty index decreased by 24 points, or 0.096 percent, to settle at 25,081.
With concerns surrounding FII outflows and restrictions on US visas, traders are eagerly awaiting signals from Q2 corporate earnings, hoping for a trade agreement between the US and India.
The broader indices, the Nifty Midcap 100 and Nifty Smallcap 100, also saw declines of 0.04 percent. Key gainers on the Nifty included Hindalco, Dr. Reddy's Labs, ONGC, Tata Steel, and Tata Consumer, while notable losers were Tata Motors, Bajaj Finance, Titan Company, Maruti Suzuki, and Hero MotoCorp.
Among sectoral indices, the Nifty IT was the worst performer, dropping by 0.23 percent. Other sectors such as Nifty Auto (down 0.21 percent) and Nifty Private Bank (down 0.14 percent) also contributed to the overall decline. In contrast, Nifty Metal and Nifty Pharma recorded slight gains.
Despite the Nifty index managing to stay above the 25,000 mark, it closed negative for the fourth consecutive session.
Analysts indicated that recent index gains lacked sufficient momentum to surpass the 25,278-25,330 range, reflecting ongoing selling pressure and a cautious market outlook.
On the upside, immediate resistance is expected at 25,100, followed by 25,250. Support levels are noted at 25,000 and 24,900.
The reforms being introduced in India, alongside a low interest rate environment, possess the potential to enhance economic growth and corporate earnings.
This could attract FIIs back to the Indian market, although the timeline remains uncertain, analysts added.
In the previous trading session, the US markets closed lower, with the Nasdaq declining 0.34 percent, the S&P 500 falling 0.28 percent, and the Dow dropping 0.37 percent.
Most Asian markets were trading positively during the morning session. The Shanghai index in China increased by 0.19 percent, with Shenzhen rising 1.29 percent. Japan's Nikkei saw a marginal rise of 0.20 percent, while Hong Kong's Hang Seng Index added 0.37 percent. Conversely, South Korea's Kospi saw a slight decline of 0.02 percent.
On Wednesday, foreign institutional investors (FIIs) sold equities worth Rs 2,425 crore, while domestic institutional investors (DIIs) were net buyers of equities worth Rs 1,211 crore.