Why Did Nifty and Sensex Open Flat Today?
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Synopsis
In today's market update, we explore the flat opening of Indian benchmark indices amidst rising IT and pharma stocks. Key insights include potential triggers for market movements and an analysis of inflation trends. Stay tuned for a detailed overview of stock performances and expert opinions that could shape future market actions.
Key Takeaways
- Benchmark indices opened flat with IT and pharma stocks gaining.
- Sensex rose by 0.15%, while Nifty 50 increased by 0.08%.
- Technical analysis suggests market is oversold.
- Immediate support for Nifty at 24,500.
- India's inflation rate eased to 1.55% in July.
Mumbai, Aug 14 (NationPress) The Indian benchmark indices started the day on a flat note this Thursday, with IT and pharma stocks experiencing significant increases.
The BSE Sensex rose by 0.15 percent to reach 80,657 points. Meanwhile, the Nifty 50 saw a modest increase of 21 points or 0.08 percent, bringing it to 24,638.
In the broader market, the BSE SmallCap index gained 0.12 percent, and the BSE MidCap index climbed by 0.30 percent.
Sector-wise, the Nifty Metal index experienced a decline of 1.05 percent, while the Nifty IT and Nifty Pharma indices surged by 0.76 percent and 0.93 percent, respectively, with most other indices showing mixed results.
Within the Nifty pack, Infosys led the gains, surging by 1.29 percent, followed closely by HDFC Life, Wipro, Adani Ports, and Apollo Hospitals. On the other hand, Tata Steel fell by 1.22 percent, along with declines in ONGC, Kotak Mahindra Bank, and Hindalco.
Analysts suggest that the market is currently in a wait-and-watch phase, seeking insights from the upcoming Donald Trump-Vladimir Putin summit and Prime Minister Narendra Modi’s Independence Day address.
From a technical standpoint, the market shows signs of being oversold, with a high level of short positions. Positive news that triggers short covering could lead to a rally, noted Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd.
He added, "On the downside, immediate support for Nifty is located at 24,500, followed by the 24,400–24,300 zone. As long as the index remains above these support levels, significant selling pressure is not expected. On the upside, 24,700 will serve as immediate resistance." Hardik Matalia from Choice Broking echoed similar sentiments.
India’s inflation rate, based on the CPI, has decreased to 1.55 percent in July, driven by a drop in food prices, marking the lowest year-on-year retail inflation since June 2017.
Despite uncertainties surrounding Trump’s trade policies and global risks, India’s growth and inflation dynamics appear favorable for FY26, albeit with a slight downgrade due to tariff adjustments.
Asian-Pacific markets exhibited a mixed trend as investors speculated on a potential rate cut by the US Federal Reserve in the upcoming month. The previous night, US markets closed positively, with the Dow Jones rising 1.04 percent, the S&P 500 up by 0.32 percent, and the Nasdaq Composite inching up by 0.14 percent.
In Asia, Japan’s Nikkei fell 1.36 percent after reaching fresh highs yesterday, while the Shanghai Composite gained 0.2 percent. The Shenzhen Component decreased by 0.15 percent, Hong Kong’s Hang Seng dipped 0.09 percent, and South Korea’s Kospi lost 0.28 percent.
On Wednesday, foreign institutional investors (FIIs) continued their selling streak, offloading equities worth Rs 3,644 crore, while domestic institutional investors (DIIs) were net buyers, acquiring equities worth Rs 5,623 crore.
Point of View
It's essential for investors to stay informed and adaptable. With expert insights and a focus on both local and global factors, we aim to provide a comprehensive perspective on the evolving financial landscape.
NationPress
20/08/2025
Frequently Asked Questions
What are the current trends in Indian stock markets?
The Indian stock markets opened flat today, with IT and pharma stocks showing considerable gains, while other sectors displayed mixed results.
What factors influence market movements?
Market movements are influenced by various factors, including global economic conditions, domestic policies, and key events such as summits and speeches from influential leaders.
How does inflation affect the stock market?
Inflation impacts purchasing power and consumer spending, which can influence corporate profits and investor confidence, thereby affecting stock market performance.
