Mumbai (Maharashtra) [India], September 23 (ANI): The volatility in the Indian stock market continued on Tuesday, with both benchmark indices opening almost flat, as investor sentiment remained dented by the sharp increase in H-1B visa costs, which weighed on the IT index.
The Nifty 50 index opened at 25,209 points, gaining 6.65 points or 0.03 per cent, while the BSE Sensex also opened flat at 82,147.37, slipping marginally by 12.60 points or 0.02 per cent.
Analysts noted that while the market is volatile, factors such as GST rationalisation, a normal monsoon, lower interest rates, and tax incentives are expected to support consumption and gradually narrow the gap between valuations and growth prospects.
Foreign investors, who had been net sellers in recent weeks, are slowly turning buyers again. Expectations of earnings upgrades in H2FY25 are driving their sentiment, with consumption-focused sectors likely to attract increased attention and lend support to the market in the near term.
Anand James, Chief Market Strategist at Geojit Investments, said, “As maintained yesterday, the resumption of near term uptrend will depend on whether the slippages stretch beyond the 25200-25000 region or not. Early moves may retain a positive bias if above 25238, but it would require a direct rise above the 25278/335 region to attract momentum. That said, the ideal rest point for the ongoing down move appears to be 24880-800.”
In the broader market, all major NSE indices opened flat. The Nifty 100 opened with a gain of 0.05 per cent, the Nifty Smallcap 100 added 0.03 per cent, and the Nifty Midcap 100 gained 0.02 per cent.
On the sectoral front, the Nifty Auto index was the top gainer, surging 1.72 per cent in early trade. Maruti Suzuki shares jumped 2.65 per cent, Ashok Leyland gained more than 2 per cent, and Tata Motors rose 1.42 per cent.
Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki, said, “The response from customers has been phenomenal–something we haven’t seen in the last 35 years. On the very first day, we recorded 80,000 enquiries, and have already delivered over 25,000 cars, with deliveries expected to touch 30,000 shortly. Demand for small cars has been especially strong, with bookings growing by nearly 50 per cent. Enquiries remain very high, and we may even run out of stock for certain variants.”
Tarun Garg, Whole-Time Director and COO of Hyundai Motor India Limited, said, “The auspicious start of Navratri, amplified by the momentum from GST 2.0 reforms, has infused strong positivity into the market. On Day 1 alone, Hyundai Motor India Limited recorded around 11,000 Dealer billings, which is our highest single-day performance in the last five years”.
The rally in auto stocks was largely attributed to the positive sentiment around GST reforms. Meanwhile, the Nifty IT index opened flat in green with a marginal gain of 0.04 per cent, while the FMCG index declined by 0.36 per cent. Most other sectoral indices faced pressure in opening trades.
Vikram Kasat, Head Advisory at PL Capital, said, “Nifty has broken the 40 HEMA decisively but it has held the lower end of the rising channel. Yesterday’s low of 25151 will be an important support level. US stocks ended last week on a high note and began this week on another. This comes with precious metals setting records of their own including today’s new gold high–and bonds and cryptocurrencies looking strong, as well.” (ANI)
