Why Did Sensex and Nifty Open Lower Amid Mixed Global Cues?

Mumbai, July 16 (NationPress) The Indian equity markets commenced trading on a negative note on Wednesday due to mixed signals from global indices.

As of 9:26 am, the Sensex recorded a decline of 141 points, equivalent to 0.17 percent, settling at 82,429, while the Nifty fell by 57 points, or 0.23 percent, to 25,138.

Conversely, midcap and smallcap indices displayed positive movements, with the Nifty midcap 100 index climbing by 23 points to reach 59,636 and the Nifty smallcap 100 index increasing by 15 points to 19,150.

According to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, “The market has been fluctuating within a tight range over the past two months. A breakout above Nifty 25,500, surpassing the upper limit of this range, will necessitate positive triggers.”

A favorable trigger could stem from a potential India-US trade agreement, with tariffs on India estimated at around 20 percent.

“Even if this occurs, can it lead to a sustained market rally? Unlikely. A lasting rally in the market requires earnings support,” he added.

On the sectoral front, IT, PSU Bank, FMCG, real estate, media, and PSE sectors were the top gainers during morning trading. In contrast, auto, financial services, pharma, metals, and energy sectors faced declines.

Within the Sensex pack, notable gainers included Adani Ports, Trent, Tech Mahindra, HDFC Bank, SBI, Infosys, ITC, HCL Tech, and BEL. Conversely, M&M, Tata Steel, Tata Motors, Bajaj Finance, ICICI Bank, Eternal, TCS, and Ultratech Cement were significant losers.

Analysts noted that the Nifty 50 experienced a pronounced rebound after testing the critical 25,000 support level, indicating a resurgence of bullish momentum.

Aakash Shah from Choice Equity Broking stated, “New long positions should be contemplated only if the Nifty maintains above the 25,250 level. While sentiment is cautiously bullish overall, traders must monitor key technical levels and evolving global signals closely.”

International markets displayed a mixed performance. Tokyo, Hong Kong, Jakarta, and Bangkok showed positive results, whereas Shanghai and Seoul recorded losses. In the United States, the Dow Jones dipped by 0.98 percent on Monday.

On the institutional front, foreign institutional investors (FIIs) ended a two-day selling streak by emerging as net buyers, acquiring stocks worth Rs 120 crore on July 15. Meanwhile, domestic institutional investors (DIIs) continued their buying spree for the seventh consecutive session, investing Rs 1,555 crore on the same day.