Mumbai (Maharashtra) [India], November 11 (ANI): Domestic stock markets continued their downward trend on Monday, as the bears pulled markets down continuously.
The Nifty 50 index opened with a decline of 60 points, or 0.25 percent, at 24,087.25 points, while the Sensex opened at 79,312.13 with a decline of 174 points, or 0.22 percent.
Experts stated that Indian markets may continue to see outflows as the U.S. markets have become an attractive destination for investment following Trump’s return. Trump’s pro-business policies are driving the U.S. markets. The earning downgrades are also affecting the markets.
“The sustained rally in the US markets which have taken the Dow and S&P 500 above 40000 and 6000 respectively is no longer a tailwind for Indian markets. Expectations that tax cuts promised by Trump and his pro-business policies will boost corporate earnings in the US are driving the rally. In India, in contrast, worse-than-expected earnings downgrades for FY25 are weighing on stock prices favouring the bears in the near-term. FIIs may continue to sell and move money to the US which has outperformed India so far this year” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the sectoral indices, except for Nifty Pharma, Nifty Consumer Durables, and Nifty Healthcare, all other indices opened with a decline on Monday, strengthening the selling pressure.
In the Nifty 50 list, 14 stocks opened with advances, while 33 declined during the early trading session.
In the quarterly announcements today, ONGC, Hindalco Industries, Britannia Industries, NMDC, UPL, Jubilant Foodworks, and Hindustan Copper are some of the major companies set to announce their second-quarter performance for FY 2025.
The selling trend by FPIs has dragged down the major Indian indices, the Nifty 50 and Sensex, both of which have dropped by around 8 percent since the beginning of this selling spree in October.
According to National Securities Depository Ltd (NSDL) data, FPIs offloaded equities worth a significant Rs 19,994 crore in just the first five trading sessions of November last week.
“The Nifty formed a small negative candle on the daily chart, indicating ongoing consolidation. The index remains in a choppy short-term trend, and technical analysis suggests a weak bias for the near term. Support for the Nifty is seen around 24,000, with a potential retest of 23,800 if the downside prevails” said Varun Aggarwal, MD, Profit Idea.
Other Asian markets also faced selling pressure on Monday, with Hong Kong’s Hang Seng declining by more than 2.6 percent, South Korea’s KOSPI index down by more than 1 percent, the Nikkei 225 index down by 0.39 percent, and Taiwan’s weighted index down by 0.68 percent. (ANI)
