Image Source : PTI (FILE) Sensex, Nifty open flat as selling continues.
Indian markets opened flat on Thursday with a marginal dip, maintaining the continuous selling pressure in both major indices. The Nifty 50 index opened at 23,542.15 points with a decline of 16.90 points or 0.07 per cent, while the BSE Sensex opened at 77,636.94 with a dip of 54.01 points or 0.07 per cent.
Experts stated that markets may continue the downward trend until February, and a reversal can be witnessed when Trump takes charge. The “Trump Anticipation Trade” is dominating the markets.
What do experts say?
Ajay Bagga, Banking and Market expert told media, “Indian markets are continuing their downtrend, impacted by downgrades to corporate earnings, higher then target inflation readings and a slower then target economic growth. FII outflows are continuing unabated. Bottom fishers are finding quicksand under their feet. We are more than halfway through this correction, but a turn may take till February, given the seasonality and the Trump Inauguration coming up. We have to tighten the seat belts. The turn will come”.
He further added “The Trump Anticipation Trade is dominating the markets. Every appointment of a China hawk is adding to this Trade. A strong US dollar, higher US Treasury Yields and rising EM outflows are all first-order effects of the Trump Trade”.
In the quarterly announcements today, Hindustan Aeronautics, Hero Motocorp, Muthoot Finance, Bharat Forge, and Grasim Industries are some of the major companies set to announce their second-quarter results.
“Weekly momentum is deeply oversold but in strong downtrends that happens often, so the burden of proof is on the market to at least take out the previous day’s high while holding support. Until that happens, bears will hold sway with the next important downside zone in the 23200 – 23300 area” said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets, Japan’s Nikkei 225 index surged marginally along with South Korea’s KOSPI index, while Hong Kong’s Hang Seng index and Taiwan’s weighted index declined at the time of filing this report.
