The Indian stock market opened with marginal benefits on Monday, as the indices rebound from oversold levels despite the outflow of foreign portfolio investors (FPIs) and weak global signals.
The Nifty 50 index opened at 24,596.05, with a slight increase of 30.70 points or 0.12 percent. Meanwhile, the BSE Sensex started the day at 80,765.83, with a slight profit of 165.92 points or 0.21 percent.
Experts blamed the initial profit for a technical surge after the Indian markets were very oversold. However, he warned that the recovery may not be durable until positive changes are supported in global sentiment.
Banking and market expert Ajay Bagga told ANI, “A challenging high American tariff headwind is facing a challenging high American tariff headwind on a major part of the export of goods in Indian markets, a risk in global markets, FPI is also out of secondary markets, even in a section of FPI, and continues to invest in the rose
He further said, “Although the major support levels are broken, the Indian markets are at the very oversold level. The second long -long consecutive weeks in Indian stocks are the second longest streak in the history of Indian markets. Thus, we expect a bounce later in the week, although it will depend on the durable global feeling and approach.”
Later this week, the market spirit is also being closely watched by the Reserve Bank of India (RBI) policy meeting.
Bagga said, “There is a place for a cut, but the RBI can hold its hand and wait for tariff clarity before cutting again. Therefore, the possibility of cut rate cut on 6th is equally balanced for now.”
In the broad market, the Nifty 100 was opened with a gain of 0.24 percent, the Nifty Midcap 100 increased by 0.35 percent, and the Nifty Smallcap 100 increased by 0.18 percent.
Between the regional indices, it was in green except for all the Nifty. The Nifty recorded a decline of 0.33 percent. Nifty Auto increased by 0.47 percent, Nifty FMCG increased by 0.19 percent, Nifty metal increased by 0.57 percent, and Nifty PSU Bank rose to 0.72 percent.
On the global front, the market spirit made a hit after releasing the US July Jobs report, which showed a rapidly slow payroll growth. The amendment in the earlier months shaved 258,000 jobs, indicating more severe recession in the labor market than earlier.
The non-agricultural payroll report often undergoes amendments due to delay in corporate data, and this time the changes for the last two months were quite low.
Vikas triggers a political response, President Donald Trump fired on the head of American labor statistics, which was called “very competent and qualified” for someone.
Analysts warned that questioning public figures could damage the market’s confidence, as American data is considered a global benchmark.
The markets did not react positively to the news.
In the bond markets, the 2 -year -old American Treasury yield declined by an 18 -year points by 3.68 percent, the biggest drop since December 2023. This indicated a flight for safety and indicated to remove expectations about the next step of the Federal Reserve.
Trump announced that he increased tension with geopolitics even after he deployed nuclear-capable submarines in “appropriate areas” in response to a threatening statement by former Russian President Dimitri Medvedev.
However, the markets were not worried more than the statement, it is considered as a rhetoric for now.
Sunil Gurjar, the sebbed analyst and founder of Alfamojo Financial Services, said that the Nifty Benchmark shut down its fifth consecutive week in the Red, marking a losers not seen since August 2023.
He said, “A rupture below the support level of 24,650 would indicate a strong downtrend in the region. Technically, while the price is trading above its 200-EAM, it is trading below the short-term major moving average, further suggesting more short-term downtrends.”
In other Asian markets, Japan’s Nikkei 225 index declined by 1.3 percent, Taiwan’s weighted index declined by 0.54 percent, while Singapore’s Straits Times increased by 0.68 percent. Hong Kong’s Hang Seng index increased by 0.24 percent and South Korea’s Kopy increased by 0.93 percent.
All eyes are on the announcement of RBI policy on 6 August and global signals in the days ahead. (AI)
