Mumbai (Maharashtra) [India], August 14 (ANI): Indian stock markets opened flat on Thursday, marking a cautious start to the last trading session of the week as markets are closed on Friday for Independence Day holiday.
Investors are keeping a close watch on the meeting in Alaska over the weekend between US President Donald Trump with his Russian counterpart, which could influence market sentiment next week.
The Nifty 50 index opened at 24,607.25, down by 12.10 points or 0.05 per cent, while the BSE Sensex started at 80,625.52, gaining 85.61 points or 0.11 per cent.
Experts said that a truce at the Alaska meeting could trigger a rally next week, but for now, the markets are likely to remain flat.
Banking and market expert Ajay Bagga told ANI that the Independence Day holiday on Friday will also impact trading patterns.
“Expect positions to be trimmed going into the long weekend. India has much to gain from a truce at Alaska, as the raison d’etre for secondary tariffs on India will weaken. Relief rally possible next week if there is a positive outcome at Alaska. However, geoeconomics is more noise than signal, so we expect the rally to be short-lived,” Bagga said.
He added that the real drivers of the market will be India’s economic growth and corporate earnings.
“Those are softer than encouraging for now. The RBI missed a runway to stimulate by more rate cuts at its August meeting despite inflation falling sharply. There are no stagflationary threats to India, we will grow around 10 per cent in nominal GDP terms, but the corporate earnings slowdown and the challenges that the SMIDs are facing could postpone a market recovery,” he noted.
In the broader market on the NSE, Nifty 100 opened with a gain of 0.04 per cent, Nifty Midcap 100 rose 0.25 per cent, and Nifty Smallcap 100 was up 0.18 per cent.
Among sectoral indices, Nifty IT, Pharma, and Realty opened in positive territory, while sectors such as Auto, FMCG, Metal, PSU Bank, and Private Bank traded under pressure.
Globally, markets in Japan, Australia, Germany, and the US are hitting all-time highs. In contrast, Indian markets have delivered a decline of 1 per cent over the past 12 months.
Experts believe the setup is favourable for a recovery, but the economy and earnings need to show strength. For now, the market remains in a wait-and-watch mode as the country prepares to celebrate Independence Day, with all eyes on developments in Alaska. (ANI)
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