Indian Stock Market Poised for Muted Opening as GIFT Nifty Trades Flat

Indian stock market expected to open subdued, GIFT Nifty trading flat, as global economic concerns and mixed cues from international markets weigh on investor sentiment.

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Indian Stock Market Poised for Muted Opening as GIFT Nifty Trades Flat

Indian Stock Market Poised for Muted Opening as GIFT Nifty Trades Flat

The Indian stock market is expected to open on a subdued note on Wednesday, with the GIFT Nifty trading flat compared to the Nifty Futures' close on April 25, 2024. The GIFT Nifty, which tracks the Indian equity indices BSE Sensex and NSE Nifty 50, is currently trading at 22,691, indicating a flat-to-positive opening for the domestic markets.

On the previous trading day, the benchmark Nifty 50 index settled at 22,570.35, gaining 167.95 points or 0.75%, while the Sensex rose by 486.50 points or 0.66% to close at 74,339.44. Analysts noted that the markets saw a steady surge in select heavyweight stocks, leading to the gains. However, they also highlighted the need for a more broad-based participation.

Foreign institutional investors (FIIs) offloaded shares worth net Rs 2,823.33 crore on April 25, 2024, while domestic institutional investors (DIIs) bought shares worth net Rs 6,167.56 crore. Crude oil prices and the US Dollar Index (DXY) saw slight increases.

Wall Street was unsettled by data showing a deceleration in the US economy and persistent inflationary pressures, with the tech-heavy Nasdaq Composite, S&P 500, and Dow Jones Industrial Average all ending lower. Asian markets are trading in mixed territory, with the Asia Dow down 1.60%, Japan's Nikkei 225 down 0.07%, Hong Kong's Hang Seng up 0.48%, and the Shanghai Composite up 0.27%.

Why this matters: The muted opening of the Indian stock market reflects the cautious sentiment among investors amid global economic concerns and mixed cues from international markets. The performance of the domestic indices will be closely watched by market participants as they assess the impact of various factors on the Indian economy and corporate earnings.

Despite the recent volatility, some analysts remain optimistic about the long-term prospects of the Indian stock market. Domestic brokerage Prabhudas Lilladher expects the Nifty to scale up to 25,810 by December 2024, citing the continuation of the NDA government and normal monsoons as positive factors. Traders should note that the Nifty lot size has been reduced to 25 from today.

Key Takeaways

  • Indian stock market expected to open flat on April 26, 2024.
  • Nifty 50 and Sensex gained on April 25, 2024, but need broader participation.
  • FIIs sold, DIIs bought shares on April 25, 2024; crude oil and USD rose.
  • Wall Street fell on US economic data; Asian markets trading mixed.
  • Prabhudas Lilladher expects Nifty to reach 25,810 by Dec 2024; Nifty lot size reduced.