New Delhi [India], September 1 (ANI): Indian benchmark indices opened decrease on Tuesday, regardless of the home economic system recording strong GDP progress of seven.8 per cent within the first quarter, as weak international cues, elevated crude oil costs and rising US Treasury yields continued to weigh on investor sentiment.
The BSE Sensex stood at 76,862.13 factors, declining 95.14 factors or 0.12 per cent, whereas the NSE Nifty 50 traded at 24,059.05 factors, down 21.35 factors or 0.09 per cent.
The subdued opening got here regardless of stronger-than-expected home macroeconomic fundamentals, with India’s Q1 GDP progress of seven.8 per cent offering reassurance in regards to the underlying energy of the economic system. However, buyers remained cautious amid stress from international markets, greater crude oil costs and elevated US bond yields.
Asian markets broadly mirrored the weak international sentiment. Hong Kong’s Hang Seng fell 1.11 per cent to 25,284.00, Singapore’s Straits Times declined 0.71 per cent to five,714.59, whereas Japan’s Nikkei 225 slipped 0.21 per cent to 66,170.00. GIFT Nifty was additionally subdued, declining 0.31 per cent to 24,152.00.
Defying the broader regional pattern, the Taiwan Weighted Index rallied 1.50 per cent to 46,821.31. Jakarta gained 0.86 per cent, Thailand’s SET rose 0.10 per cent, whereas the Shanghai Composite edged up 0.03 per cent.
Commenting in the marketplace outlook, V Okay Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, mentioned the 7.8 per cent Q1 GDP progress was reassuring and indicated that India remained on observe to attain round 7 per cent progress in FY27.
‘Services and secondary sectors rising at 10 per cent and eight.5 per cent, respectively, mirror a strong economic system which may ship first rate earnings progress in FY27,’ he mentioned.
However, Vijayakumar cautioned that international headwinds might weigh on equities within the close to time period.
‘This has the potential to maintain the market resilient, however within the close to time period, the worldwide headwinds from elevated crude and extreme US bond yields would possibly impression the market negatively,’ he mentioned.
He famous that the US 10-year bond yield at 4.77 per cent and the 30-year yield at 5.24 per cent remained detrimental elements for fairness markets, doubtlessly encouraging a flight of capital in direction of safer US bonds.
‘During the final two days, FIIs had offered fairness value Rs 13,025 crore within the money market,’ Vijayakumar added.
Global fairness markets additionally remained beneath stress. In in a single day US buying and selling, the S&P 500 declined 0.33 per cent to 7,686.14, whereas the Nasdaq fell 0.12 per cent to 26,370.89. Dow Jones Futures, nevertheless, traded marginally greater, gaining 0.12 per cent to 53,248.56.
On the technical entrance, Rajesh Palviya, Head of Research at Axis Direct, mentioned the near-term market undertone remained cautious so long as the Nifty traded beneath 24,200.
‘Immediate assist is positioned at 23,900, adopted by 23,800. A sustained restoration in crude costs might proceed to weigh on sentiment, whereas any significant cooling in crude might assist the market regain its restoration trajectory,’ he mentioned.
Crude oil costs remained elevated, including to issues for oil-importing economies reminiscent of India. At the time of reporting, Brent crude climbed 0.73 per cent to USD 91.15 per barrel, whereas WTI crude rose 1.03 per cent to USD 86.64 per barrel. Gold edged decrease by 0.06 per cent to commerce at USD 4,438.51.
Thus, whereas the robust Q1 GDP print provides assist to the home progress outlook, Indian equities stay weak within the close to time period to international danger aversion, greater US yields, international fund outflows and elevated crude oil costs. (ANI)