Stock market today: Nifty50 opens below 26,000; BSE Sensex down over 300 points
Market experts indicate that trading is likely to remain range-bound with increased volatility, particularly as the year draws to a close with reduced trading volumes and global economic uncertainties.Dr.
VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “The market is moving into a consolidation mode in the near-term.
Since sustained FII selling is easily getting absorbed by DII buying and economic fundamentals are indicating significant improvement, the market will find support on weakness.
Rupee also is likely to stabilize since November trade deficit has come down to $ 24.53 billion from $ 41.64 billion in October. This will take away some pressure on the FIIs to sell anticipating further depreciation.The weakening of the AI trade continues in the US.
Chances are that at some point in 2026, AI trade will weaken significantly facilitating capital flows into EMs like India.
However, if the market is to show sustained strength, earnings recovery is essential.
Q3 numbers will indicate where earnings recovery is happening.
Bank Nifty will continue to be strong.”US markets ended lower on Monday as investors awaited crucial economic reports this week, whilst monitoring Federal Reserve official statements and potential candidates for insights into interest rate directions.Asian shares showed slight declines at opening as traders reduced exposure ahead of important US economic data releases that could influence interest rate decisions.
The yen gained strength.Oil prices decreased during early Tuesday trading, extending Monday’s downward trend, as improving prospects for Russia-Ukraine peace negotiations suggested possible relaxation of sanctions.Gold prices increased slightly on Tuesday, bolstered by anticipated US interest rate reductions in January.
Investors monitored upcoming employment data, whilst silver remained close to its recent historic peaks.Foreign portfolio investors sold shares worth Rs 1,468 crore net on Monday.
Domestic institutional investors made net buys of Rs 1,792 crore.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own.
These opinions do not represent the views of The Times of India)
