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Indian equity markets opened volatile on Monday with the Sensex slipping around 50 points and the Nifty trading nearly flat. Investors are tracking PMI data, global cues and foreign investor activity amid a data-heavy week and early earnings season.
Sensex Below 85,700 as Markets Begin Week on Cautious Note
Mumbai: Indian stock markets opened with volatility on Monday, the first trading day of the week. The BSE Sensex opened above 85,700, but fell by about 50 points in early trade. The NSE Nifty50 opened at 26,324 and remained almost flat, losing just 4 points.
The market also experienced pressure during the pre-open session. By 9:06 am, the Sensex had slipped more than 50 points to below 85,700, while the Nifty showed slight strength, rising 22 points to around 26,350. This indicated a tug-of-war between buying and selling in the market.
Last week, strong and consistent buying by domestic institutional investors (DIIs) supported the market. Despite mixed signals from global markets, Indian equities remained bullish, maintaining investor confidence. Market experts say that the market decline may be limited due to participation from domestic funds.
The coming week is considered to be a crucial one from a statistical perspective. Important economic data is expected to be released both domestically and internationally. Domestically, investors will be watching the final data of the HSBC Services PMI and HSBC Composite PMI. These indices will help understand business activity and employment trends.
On the global front, the market will also be closely monitoring key macroeconomic data from the US and economic data from China. These may provide indications of global demand, growth, and inflation, which will influence investor strategies.
Ajit Mishra, Senior Vice President (Research), Religare Broking Ltd, says that while optimism about domestic economic fundamentals has increased at the start of the new year, global developments and trading activity by foreign investors may keep the market volatile. Furthermore, the initial round of quarterly results will also set the tone for investors.