Nifty, Sensex to open little changed amid global rally slowdown

Stock market news: Benchmark indices NSE Nifty 50 and S&P BSE Sensex are poised for a stagnant opening on Wednesday, maintaining a steady stance near record highs while the global rally, fuelled by optimism over potential US rate cuts, loses momentum.

The Gift Nifty traded 22 points lower at 22,239.50 as of 8:28 am IST, indicating the Nifty 50 is likely to open around Tuesday's close of 22,004.70.

Asian markets showed a decline at the outset, with the MSCI ex-Japan down by 0.2 per cent.

Overnight, Wall Street equities concluded lower for the second consecutive session, following their best week in 2024 on Friday. This surge was supported by the Federal Reserve's commitment to three rate cuts this year, alleviating concerns regarding potential delays in policy easing despite recent higher-than-anticipated US inflation data.

Both domestic and other Asian equities experienced a rally towards the end of last week after the Fed's statements on March 20.

On Tuesday, the Nifty 50 and BSE Sensex, each dropped approximately 0.5 per cent, primarily due to declines in financials and information technology stocks.

Prashant Tapse, Senior Vice President, Research Mehta Equities, attributed this to investors resorting to profit-taking amidst a lack of enthusiasm during the shortened week.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said, “In yesterday's trade, Nifty faced heavy selling pressure, ending on a negative note, prompting concerns about the resilience of Nifty bulls amidst headwinds including Federal Reserve rate speculation and weak corporate guidance. Investor attention now turns to key economic data and the upcoming earnings season.”

“Despite challenges, potential support for Nifty bulls lies in foreign institutional buying and global market momentum. Volatility is expected to rise ahead of the F&O expiry. Notable market movements include InterGlobe Aviation hitting a record high, Adani Ports' acquisition, and fluctuations in oil and steel prices" Tapse added.

Following weak commentary on demand and client spending from global bellwether Accenture, the Nifty IT index witnessed a decline of about 3 per cent over the last two sessions.

Analysts anticipate subdued activity in the domestic markets, with the benchmark Nifty 50 likely to hover around the 22,000 level in the next two sessions, ahead of the conclusion of the 2024 financial year.

Both the Nifty 50 and Sensex are set to record their fourth consecutive quarterly gains, with gains of approximately 27 per cent and 23 per cent, respectively, in fiscal 2024.

Stocks to watch

• Power Grid Corporation of India: The company commissioned a capacity expansion project in the Southern region.
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• Central Depository Services: According to a CNBC-TV18 report, Standard Chartered Bank is expected to sell its entire 7.18 per cent stake in the company via block deals.
• Shyam Metalics and Energy: The company's joint venture secured a letter of intent for a composite license for an iron ore block in Maharashtra.