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Thursday, December 26, 2024

Selling pressure drags Indian Markets into red after positive start

Indian markets faced a reversal in sentiment on Thursday, slipping into negative territory after a positive start. The Nifty 50 opened with a gain of 64.70 points (0.28%), at 23,518.50 points, while the BSE Sensex also registered an early rise of 132.73 points (0.17%), starting at 77,711.11 points.

At 9:43 a.m., Sensex was trading at 76,968.28 after slipping 610.10 points or 0.79 percent. Nifty was trading at 23,308.85 after falling 209.65 points or 0.89 percent.

Market experts suggest that Indian indices are likely to remain softer in the short term. The markets may experience further fluctuations next week, particularly after the announcement of state election results, which could influence investor sentiment.

Ajay Bagga, a banking and market expert, said that global developments such as Nvidia’s earnings results, the Ukraine conflict, and charges against the Adani group in a U.S. court were weighing on the markets. “Asian markets are soft this morning, and we expect Indian markets to follow a similar trend, with potential support if the ruling coalition performs well in the state elections,” Bagga said.

Among the major losers in the Nifty 50 list, Adani Enterprises and Adani Ports saw significant declines, both hitting the lower circuit limit with losses of nearly 10%. Adani Green Energy shares also opened sharply lower, dropping 18% after U.S. prosecutors charged Gautam Adani and others in a solar energy contract bribery case. In response, the Adani group announced that its subsidiaries would hold off on proposed U.S. dollar-denominated bond offerings.

The Nifty 50 index had earlier shown a strong bounce on Tuesday, but the rally faltered as buying interest waned near the 23,800 level, forming an “inverted hammer” candlestick pattern. Akshay Chinchalkar, Head of Research at Axis Securities, said that the Nifty’s recent setup suggests a potential bullish trend, contingent on breaking the high of Tuesday’s session and holding support near 23,350. “Any breakdown could bring focus to 23,200, a key Fibonacci level tied to the election-day lows and record highs,” Chinchalkar added.

In other Asian markets, selling pressure was prevalent. Japan’s Nikkei 225 index fell by 0.84%, and Hong Kong’s Hang Seng index dropped by 0.19%. Meanwhile, markets in South Korea and Jakarta Composite saw modest gains.

In the U.S., both the S&P 500 and Nasdaq indices closed nearly flat on Wednesday, signaling a period of consolidation in global markets.

(ANI)

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