Indian stock markets commenced trading on a tepid note on Tuesday, with marginal gains amid persistent selling by Foreign Portfolio Investors (FPIs) and concerns over corporate earnings and economic slowdown.
Analysts suggest that investor sentiment remains subdued as markets struggle to recover from prolonged pessimism.
The Nifty 50 index opened at 22,568.95, gaining 21.40 points or 0.09 per cent, while the BSE Sensex began at 74,706.60, marking an increase of 104.48 points or 0.14 per cent.
Ajay Bagga, a banking and market expert, underscored the prevailing market distress, attributing it to lacklustre earnings and persistent FPI outflows.
He noted that while the Reserve Bank of India’s (RBI) decision to ease credit risk weights on household loans would typically trigger a rally in banking stocks, market conditions remain uncertain.
“The MFI loans drag is already digested in the price of financials. We have to wait and watch to see how today's February expiries progress. Overall, it’s deep dark clouds with the sun trying to break through,” he remarked.
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Sectoral trends on the National Stock Exchange (NSE) were mixed at the opening bell. Nifty Auto, Media, Metal, and Realty indices faced selling pressure, opening in the red, while other sectors managed to hold gains.
In early trade, 26 of the 50 Nifty stocks showed positive momentum, while 23 declined, and one remained unchanged. Shriram Finance, Bajaj Finance, and IndusInd Bank emerged as top gainers, while Ultratech Cement, Bajaj Auto, Grasim, and Trent were among the prominent laggards.
Akshay Chinchalkar, Head of Research at Axis Securities, highlighted critical technical indicators, suggesting a cautious outlook.
“The Nifty ended down for the sixth day along with the India VIX, which means investors may be thinking that, in the near term at least, the downside is limited. Still, Tuesday’s attempted rebound failed to stick and generated a candle with a long upper shadow, indicating serious overhead resistance. Support remains anchored between 22,370 and 22,500, while bulls need a daily close above 22,720 to attempt a run towards the next resistance between 23,050 and 23,280,” he explained.
As investors remain wary, attention now turns to the February derivatives expiry session.
Analysts suggest that the market’s ability to sustain buying interest will be pivotal in determining near-term trends, particularly amid prevailing economic concerns.
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