Indian Stock Markets Open Flat Amid Profit-Booking Anticipations and Sectoral Divergences

The Indian stock markets opened flat on Tuesday, with the NSE Nifty 50 and BSE Sensex showing marginal gains. Sectoral stocks displayed mixed trends. Market movements are influenced by geopolitical tensions and potential interest rate cuts. Upcoming GDP data will be crucial for further insights.

The Indian stock markets opened flat on Tuesday amidst expectations of profit-booking. The benchmark indices, which hovered close to lifetime highs on Monday, showed marginal advances in early trading.

On Tuesday, the NSE Nifty 50 started 0.09% higher at 25,032.50, while the BSE Sensex opened 0.08% higher at 81,759.70. Sectoral performance was mixed, with gains in the power, pharma, metal, IT, and media sectors, while telecom, auto, and banking stocks saw selling pressure.

Top gainers on the NSE included HCL Technologies, Apollo Hospitals, Dr Reddy's Laboratories, Larsen & Toubro, and Cipla. Conversely, BPCL, Shriram Finance, Kotak Mahindra Bank, JSW Steel, and HDFC Life Insurance were the major laggards.

Investor sentiment is being shaped by geopolitical tensions in the Middle East and Ukraine, as well as rising Brent crude prices. "There are both headwinds and tailwinds for the market now," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He pointed to the potential rate cuts by the Fed, which may influence the Reserve Bank of India's future monetary policy.

Monday saw domestic markets close significantly higher, with the Sensex gaining 611.90 points to finish at 81,698.11, while the Nifty 50 rose 187.45 points to 25,010.60. The formation of a long bullish candlestick on the Nifty 50's daily chart indicates a potential breakout above resistance levels.

The focus later this week will be on the first-quarter GDP data, scheduled for release on Friday. The Reserve Bank of India forecasted 7.2% GDP growth for 2024-25. In 2023-24, India's GDP grew by an impressive 8.2%, cementing its status as the fastest-growing major economy.

(With inputs from agencies.)