Daijiworld Media Network - Mumbai
Mumbai, May 19: Indian equity markets opened on a flat note Monday morning, influenced by mixed global signals and early selling pressure in the IT sector.
At 9:32 am, the BSE Sensex was trading nearly unchanged, up just 3.88 points at 82,326.71, while the Nifty 50 edged 14.70 points higher to 25,034.50, reflecting muted investor sentiment.
Broader market indices showed relatively stronger momentum, with Nifty Bank rising 134.25 points (0.24%) to 55,489.15, the Nifty Midcap 100 climbing 143.30 points (0.25%), and the Nifty Smallcap 100 surging 141.35 points (0.80%).
Market strategists warned that the Nifty is nearing a key resistance zone at 25,235, the October 2024 peak. A failure to break this level could trigger a pullback. “The lofty 26,277 peak from September remains a longer-term hurdle,” noted Anand James, Chief Market Strategist at Geojit Financial Services, cautioning investors to watch for signs of waning risk appetite.
“Should Nifty fail to sustain above 25,235 or break down below 24,870/807 region, we may see sharper intraday declines,” James added, placing immediate downside support at 24,950.
The ongoing market rally is largely being driven by strong foreign institutional investor (FII) inflows, which have amounted to ?23,800 crore so far this month. Experts also attribute the bullish sentiment to easing global trade tensions, strong U.S. market performance, and the recent India-Pakistan ceasefire, which have collectively boosted investor confidence.
Within the Sensex pack, major IT names were among the top laggards, with Infosys, TCS, HCL Tech, and Tech Mahindra leading the decline. Other losers included IndusInd Bank, M&M, Reliance Industries, and L&T.
On the flip side, top gainers included NTPC, Bajaj Finance, Tata Motors, Sun Pharma, Bajaj Finserv, PowerGrid, SBI, and HDFC Bank.
Asian markets painted a mixed picture. China, Hong Kong, Japan, Bangkok, and Seoul were trading in the red, while Jakarta was the sole regional gainer.
U.S. markets ended on a strong note last Friday. The Dow Jones Industrial Average climbed 331.99 points (0.78%) to close at 42,654.74, the S&P 500 gained 0.70%, and the Nasdaq advanced 0.52%.
FIIs remained net buyers, picking up equities worth Rs 8,831.05 crore on May 16, while domestic institutional investors (DIIs) also added Rs 5,187.09 crore to their portfolios, signaling continued institutional interest in Indian equities.