NEW DELHI: Indian stock markets opened marginally higher on Thursday, a day after being closed for the Christmas holiday. However, the chances of a sustained year-end rally appear dim amid persistent market pressures.
The BSE Sensex opened at 78,877.12, gaining 404.25 points or 0.52% at 09:23 am. While the Nifty 50 index started at 23,790.85, registering a slight gain of 63.20 points or 0.27%,
On Tuesday, The Nifty 50 index opened at 23,769.10, registering a slight gain of 15.65 points or 0.07%, while the BSE Sensex started at 78,707.37, gaining 167.20 points or 0.21%. By midday, the indices showed moderate upward movement, with Sensex trading at 78,636.97, up 164.10 points (0.21%), and Nifty rising to 23,790.85, up 63.20 points (0.27%).
Market analysts attribute the lacklustre performance to a strong US dollar and high bond yields, which have prompted Foreign Institutional Investors (FIIs) to sell during rallies. “The relief rally witnessed yesterday is unlikely to continue in the coming days. External factors like the strong dollar and high bond yields, combined with internal challenges such as growth and earnings slowdown, will restrain a sustained rally,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Among sectoral indices, gains were recorded in Nifty Auto, Nifty FMCG, Nifty IT, Nifty Media, and Nifty PSU Bank. Meanwhile, other sectors remained under pressure.
In the Nifty 50 pack, 31 stocks opened higher, with Britannia, TCS, Tata Motors, Nestle India, and Hero Motors leading the gains. On the flip side, 19 stocks declined, including JSW Steel, IndusInd Bank, and Shriram Finance.
Asian markets showed a mixed performance on Tuesday. Japan’s Nikkei 225 and South Korea’s KOSPI traded lower, while Taiwan’s Weighted Index, Hong Kong’s Hang Seng, and Indonesia’s Jakarta Composite posted marginal gains.
As the year-end approaches, market experts advise caution. “Investors should prioritise safety over returns in the current context,” Vijayakumar added, citing the combined impact of external and internal headwinds on the market sentiment.