Why Did the Indian Stock Market Open Flat Ahead of Key Inflation Data?

Mumbai, June 12 (NationPress) The Indian benchmark indices commenced the trading session on a flat note on Thursday, as investors awaited crucial retail inflation data. Early trading saw sell-offs in the auto, IT, and PSU Bank sectors.

At approximately 9:28 AM, the Sensex was up by 69.22 points, or 0.08 percent, at 82,584.36, while the Nifty gained 23.65 points, or 0.09 percent, reaching 25,165.05.

The Nifty Bank index rose by 98.65 points, or 0.17 percent, to stand at 56,558.40. The Nifty Midcap 100 index was at 59,267.75 after a decline of 120.40 points, or 0.20 percent. The Nifty Smallcap 100 index fell to 18,772.35, down 26.40 points, or 0.14 percent.

Analysts noted that while the Nifty closed higher yesterday, it had retreated from its intra-day high. The candle pattern from yesterday was a doji, with a slightly extended upper shadow, immediately following the 'upside-gap two crows' formation, indicating that bulls must defend the 25,029 level in the short term.

“Should the bears manage to push the index below the 24,987-25,029 range, a fall to the 24,800-24,863 area will likely occur,” stated Akshay Chinchalkar, Head of Research at Axis Securities.

In the Sensex roster, the leading gainers included Asian Paints, Sun Pharma, Bajaj Finserv, Bharti Airtel, Bajaj Finance, NTPC, and HDFC Bank. Conversely, Infosys, Eternal, Tata Motors, Tech Mahindra, HCL Tech, Tata Steel, and IndusInd Bank were among the top losers.

Across Asian markets, Hong Kong, Bangkok, Jakarta, and Japan were in the red, while Seoul and China traded positively.

In the previous trading session, the US Dow Jones closed at 42,865.77, dipping by 1.10 points, or 0.00 percent. The S&P 500 fell by 16.57 points, or 0.27 percent, ending at 6,022.24, while the Nasdaq concluded at 19,615.88, down 99.11 points, or 0.50 percent.

The current sideways trend in the market is expected to persist in the near term, as there are no evident positive catalysts on the horizon, according to experts.

Reports suggest a potential agreement between the US and China, though no official confirmation has come from the Chinese government.

“Additionally, US President Donald Trump has announced plans to send letters to trade partners in the coming weeks regarding universal tariffs. Market players are awaiting more clarity on this situation, as the tariff crisis is far from resolved,” explained Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.

On the institutional front, foreign institutional investors (FIIs) were net sellers, offloading equities worth Rs 446.31 crore on June 11, while domestic institutional investors (DIIs) acquired equities valued at Rs 1,584.87 crore.