Indian stock indices Nifty and Sensex opened flat on Thursday amid selling by Foreign Institutional Investors (FIIs) and buying support from Domestic Institutional Investors (DIIs), keeping the indices in a balanced mode.
The Nifty 50 index opened just above the 26,000 mark at 26,005 points, while the Sensex opened at 85,167 points, crossing the 85,000 mark.
According to market experts, the US elections may have a global impact on markets, but Indian markets remain strong due to buying sentiment from domestic investors and the robust economic outlook of the Indian economy.
“The FIIs have been net sellers in the cash markets for the last two days. Domestic flows are more than adequate to counter this. We had positive comments from global analysts at JP Morgan and Morgan Stanley on the attractiveness of the Indian markets for long term global investors. We once more reiterate that it is a decadal bull market that we are witnessing in India, backed by a strong combination of robust pro-growth policies” said Ajay Bagga, Banking and Market Expert.
He further added on the US elections effect on stock markets that “US markets took a small breather though Nasdaq continued its march onwards on Wednesday. The impact of the US Presidential Elections of November 5th will lead to less flows into the US markets. Historically, US markets tend to weaken going into the Elections and then rally once the results are declared. This time, given the close contest, clarity on the winner could take a few days and this will be disruptive”.
In the sectoral indices of National Stock Exchange, Nifty Bank and Nifty Auto faced selling pressure, with both indices opening with a marginal dip. However, most sectoral indices remained flat, with a maximum marginal gain of 0.2 per cent in the opening session.
In the Nifty 50 stock list, 34 shares opened with gains, 12 opened in decline, and 4 remained unchanged.
Meanwhile, Asian markets rallied on Thursday, driven by a weakening Yen and the impact of the Chinese stimulus, which boosted Japanese and Chinese markets, providing support to commodities.
Japan’s Nikkei index surged by more than 2 per cent, Hong Kong’s Hang Seng index rose by 1.81 per cent, and South Korea’s KOSPI index gained more than 2 per cent. Taiwan’s markets were also up by 0.8 per cent at the time of filing this report.