Indian markets started the day in the red, with SENSEX and NIFTY falling due to global pressures and oil price volatility. Despite the dip, experts highlight market resilience, citing strong domestic liquidity and positive economic indicators.
Indian markets continue to open in red as persistent pressure from mixed global signals and oil volatility weighs on investor sentiment. The BSE SENSEX stood at 77,872.84 points, down 93.51 points or 0.12 per cent, while the NSE NIFTY 50 stood at 24,364.30 points, losing 71.65 points or 0.29 per cent.
Market Outlook: Resilience Despite Downturn
Despite the initial downturn, market analysts suggest that the broader structure remains resilient due to strong domestic liquidity and favorable macroeconomic indicators.
VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “The market is likely to continue along the consolidation phase and sideways movements in the near-term. The tailwind for the market is the strong fundamentals coming from robust growth and earnings momentum which, in turn, is getting support from sustained liquidity flows from domestic investors.”
“High frequency indicators like GST collections, freight, auto sales and credit growth are big positives that can surprise growth and earnings on the upside,” Vijayakumar added.
“The main headwind continues to be the elevated crude prices and the uncertainty regarding the crude price trends. The ideal investment strategy at this juncture is to remain invested and continuing to invest systematically.”
Commodity and Global Market Update
At the time of reporting, Brent Crude fell by USD 0.79 or (-0.89%) to USD 88.19 per barrel and Crude Oil dropped USD 0.87 or (-1.05%) to USD 82.40 per barrel.
Meanwhile, Gold remained nearly flat, edging up just 0.01 per cent to trade at USD 4,409.19.
Vijayakumar noted that Brent Crude settled near USD 88/bbl as markets stayed sceptical of a quick resolution to shipping disruptions in the Strait of Hormuz, with US-Iran tensions keeping risk premiums elevated.
Global markets presented a mixed picture. US markets posted mild gains, with the Nasdaq rising 143.04 points to reach 26,588.49, while the S&P 500 increased by 20.30 points to 7,748.50. However, Dow Jones dipped slightly by 0.04 per cent to stand at 53,749.00.
Impact of US Economic Data
Devarsh Vakil of HSL Prime Research highlighted key technical levels for the domestic benchmark.
“US headline CPI rose 3.4% YoY in July, matching consensus, cooling from June’s 3.5%. Core CPI held at 2.5% YoY, also in line with forecasts. The soft print led markets to pare back bets on an aggressive Fed move at the September meeting, with gold rallying above USD 4,400 — a two-month high — on rising odds that the Fed holds rates steady. The dollar firmed into the release,” he said
“The Nasdaq Composite and S&P 500 are recovering from earlier losses on strong results from AI infrastructure and cloud names,” Vakil added.
(ANI)
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