Selling pressure returns to stocks as Nifty, Sensex down in opening session; Metals, PSU Banks shine

Mumbai (Maharashtra) [India], October 3 (ANI): The selling pressure returned to Indian markets on Thursday after a brief bounce back in the previous trading session, as persistent foreign investor outflows weighed on sentiments.

Both benchmark indices opened lower, reflecting weakness across sectors, though select pockets like metals and PSU banks managed to shine.

The Nifty 50 index opened at 24,759.55, slipping 76.75 points or 0.31 per cent, while the BSE Sensex opened at 80,684.14 with a decline of 299.17 points or 0.37 per cent.

The broader market showed mixed trends, with the Nifty 100 down by 0.20 per cent, Nifty Midcap 100 edging up 0.14 per cent, and Nifty Small Cap 100 trading flat in green with a marginal gain of 0.02 per cent.

Among the sectoral indices on the NSE, FMCG, IT, media, and realty sectors were under pressure in the early session, while auto stocks opened flat. In contrast, metal and PSU bank shares were among the top gainers, providing some cushion to the indices.

Meanwhile, gold continued its rally, marking new highs for the seventh consecutive week.

Manav Modi, Analyst - Precious Metals Research, Motilal Oswal Financial Services, said Gold held steady and was set for a seventh straight weekly gain, buoyed by expectations of further U.S. interest rate cuts this year and worries over the impact of a U.S. government shutdown. Meanwhile, silver in yesterday session witnessed some profit booking after hitting an all-time high on the domestic front and a 14-year high on COMEX.

On the global front, concerns remained heightened as the U.S. government shutdown entered its second day on Thursday.

The development is likely to delay key economic data releases, including the non-farm payrolls report and the unemployment rate, both of which are closely watched by investors. With the shutdown in effect, analysts believe the labour statistics are unlikely to be released on time, adding uncertainty to market projections.

Back home, markets had staged a sharp recovery on Wednesday, snapping eight consecutive sessions of decline.

Shrikant Chouhan, Head of Equity Research at Kotak Securities, noted, On daily charts, the market has formed a long bullish candle and a reversal formation, which supports a further uptrend from the current levels. We are of the view that 24,800/80,800 and 24,700/80,500 are key support zones for day traders. As long as the market trades above these levels, a pullback formation is likely to continue. On the higher side, it could move up to 24,950-25,000/81,300-81,500, and further upside may also continue, potentially lifting the market up to 25,075/81,700. However, below 24,700/80,500, market sentiment could change.

In other Asian markets, Japan Nikkei 225 surged 1.46 per cent, Taiwan weighted index advanced 0.98 per cent, while Hong Kong Hang Seng index slipped 0.95 per cent, indicating mixed regional cues. (ANI)

Disclaimer: This news article is a direct feed from ANI and has not been edited by the News Nation team. The news agency is solely responsible for its content.