Synopsis : After a sharp rebound from Monday's crash, Indian markets opened strong but lost momentum by mid-session. Nifty slipped below 22,400 with pressure from Power Grid, Trent, and Nestle.
The Indian stock market opened on a high note this morning, bouncing back from the bloodbath seen on Monday. The BSE Sensex surged past 74,000, and the Nifty 50 traded near 22,500 in early trade. However, the optimism didn't last long as markets lost steam, with Nifty slipping below 22,400 in the second half of the session. Power Grid, Trent, and Nestle were the top drags pulling the index lower.
Global Cues: A Mixed Bag
Asian peers like Japan and South Korea posted robust gains, recovering from the global sell-off earlier this week. Meanwhile, US futures were also in the green, signaling potential stability. The Nasdaq Composite inched up 0.10%, providing some relief to global tech investors, although Dow Jones slipped 0.91%, and S&P 500 fell by 0.23%, indicating continued caution.
Domestic Sentiment: FIIs Sell, DIIs Buy
Foreign Institutional Investors (FIIs) continued to book profits, selling equities worth ₹9,040 crore on Monday, contributing to an overall outflow of ₹22,770.50 crore in April so far. On the other hand, Domestic Institutional Investors (DIIs) remained bullish, buying stocks worth ₹12,122.45 crore on the same day. This tug-of-war between global and domestic investors is keeping markets volatile.
RBI Policy in Focus
All eyes are now on the RBI Monetary Policy Committee (MPC), which is expected to announce a 25 basis point rate cut in its upcoming meeting. With inflation showing signs of easing, Governor Sanjay Malhotra-led committee is likely to adopt a more accommodative stance to support growth. The decision is expected on Wednesday and will be a key driver for market sentiment this week.
Key Stocks in Action:
Power Grid, Trent, and Nestle are dragging the Nifty lower after the morning surge.
Banking and auto stocks remain resilient amid the broader volatility.
Tech stocks are seeing selective buying after global tech indices showed mild gains.
Disclaimer : This article is for informational purposes only and should not be taken as financial advice. Please consult your financial advisor before making investment decisions.
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