Markets open cautiously on mixed global economic cues
The stock markets opened with a marginal positive bias on Tuesday, December 10, 2024, reflecting a complex global economic landscape characterised by mixed signals from international markets and potential policy shifts.
The Sensex opened higher at 81,575.96 from its previous close of 81,508.46 and is currently trading at 81,605.17 as of 9:45 am, up by 96.71 points or 0.12 per cent. Similarly, the Nifty opened at 24,652.65 compared to its previous close of 24,619.00 and is now at 24,648.50, gaining 29.50 points or 0.12 per cent. The market’s cautious sentiment was evident in the narrow trading range and subdued initial movements.
Foreign institutional investors (FIIs) emerged as a crucial positive factor, turning net buyers and purchasing equities worth ₹724 crore on the previous trading day. This development came against a backdrop of domestic institutional investors selling equities worth ₹1,648 crore during the same period.
China’s recent economic announcements significantly influenced market sentiment globally. “Beijing announced intentions for more proactive fiscal measures and a moderately looser monetary policy to revive domestic consumption and support economic growth,” noted Ameya Ranadive, Senior Technical Analyst at StoxBox.
The market showed varied sectoral performances. Banking and metal stocks attracted particular attention. “Financials are resilient and moving up on good prospects and attractive valuations,” explained Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. The potential appointment of a new RBI Governor, Sanjay Malhotra, further sparked optimism in the banking sector.
Several corporate developments also captured market attention. Tata Power unveiled plans to invest ₹1.2 lakh crore in Rajasthan’s renewable energy sector, focusing on rooftop solar installations and electric vehicle charging infrastructure. Vodafone Idea announced a share sale plan to raise ₹1,980 crore from its UK parent company.
Top gainers included Shriram Finance (2.01 per cent), Apollo Hospitals (1.47 per cent), Bajaj Finserv (1.28 per cent), Infosys (1.11 per cent), and Tata Motors (0.98 per cent). Conversely, stocks like M&M (-1.29 per cent), ONGC (-0.95 per cent), Grasim (-0.93 per cent), Bajaj Auto (-0.82 per cent), and Ultratech (-0.70 per cent) experienced declines.
International commodities also showed interesting trends. Gold climbed to a two-week high of $2,663 per ounce, driven by China’s central bank adding bullion to its reserves and Middle East tensions. Brent Crude remained steady at $72 per barrel.
“The market is anticipated to open on a positive note, supported by a rally in Asian markets and strong net buying by foreign institutional investors,” said Vikas Jain, Head of Research at Reliance Securities.
Technical analysts provided nuanced perspectives on potential market movements. Hardik Matalia from Choice Broking suggested that the Nifty could find support at 24,500, with immediate resistance at 24,750. He recommended a “buy-on-dips” strategy, advising traders to maintain a stop-loss at 24,000 on a closing basis.
Investors are now keenly awaiting upcoming economic indicators, including domestic inflation and Index of Industrial Production (IIP) data later this week. The Federal Open Market Committee’s interest rate policy decision on December 18 is also expected to significantly influence global market sentiments.
