Stock Market Opens Flat Amid Weak Investor Sentiment
Mumbai Stock Market Opens Flat Amid Global Concerns and Upcoming IPOs
Mumbai (Maharashtra) [India], September 29 (ANI) — The Indian stock market opened on a cautious note on Monday, with the benchmark Nifty 50 index rising by 73.85 points, or 0.30%, to settle at 24,728.55. Similarly, the BSE Sensex gained 162.31 points, or 0.20%, starting the day at 80,588.77. This modest uptick comes after a tumultuous week marked by significant corrections, as investor sentiment remains shaky, particularly due to U.S. President Donald Trump’s tariff policies affecting the pharmaceutical sector in India.
Market analysts are keeping a close watch on the upcoming week, which is expected to be bustling with activity in the primary markets. A total of 21 new IPOs are set to open, alongside 26 companies preparing for their listing debuts. However, experts warn that the secondary markets may continue to face pressure, particularly in the IT sector, following disappointing results from major players.
Ajay Bagga, a banking and market expert, commented, “Asian markets are muted this morning. The focus is on the upcoming rate decisions from the RBI and RBA. Tomorrow marks a monthly expiry day for Indian derivatives on the NSE, so rollovers will be closely monitored, especially given the substantial short positions held by foreign portfolio investors (FPIs). While the primary markets seem to be thriving, the secondary markets are feeling the strain from ongoing block deals and IPOs.”
In the broader market, the Nifty 100 index opened with a gain of 0.23%, while the Nifty Smallcap 100 and Nifty Midcap 100 rose by 0.33% and 0.42%, respectively. On the sectoral front, all sectors except Nifty FMCG opened in the green, with notable gains in Nifty Auto (up 0.54%), Nifty IT (up 0.33%), and Nifty Pharma (up 0.45%).
Globally, U.S. stocks faced a challenging week, with major indices declining between 0.2% and 0.8%. The recent AI-driven rally saw some profit booking, which had a ripple effect on international markets. Additionally, a strong revision of the U.S. Q2 GDP to 3.8% and a mild PCE index reading suggest that tariffs have not yet derailed the U.S. economy or triggered rampant inflation. However, concerns linger over a potential U.S. government shutdown at the end of the month due to political disagreements.
On the technical front, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the Nifty IT index has experienced a steep decline, falling nearly 8% last week. “It has broken below its 200-week EMA level, indicating further weakness in the short term,” he stated. He also highlighted that sectors such as Pharma, Healthcare, and Media may underperform in the near future.
In Asian markets, Japan’s Nikkei 225 index fell by 0.95%, while other major markets like Hong Kong’s Hang Seng and South Korea’s KOSPI saw gains of over 1%.
As investors navigate these turbulent waters, the focus remains on upcoming IPOs and the broader implications of U.S. economic policies on the Indian market.
