Sensex, Nifty turn volatile at open amid US Fed rate cut

 

by IANS |

Mumbai, Dec 11 (IANS) Indian stock markets opened on a volatile note on Thursday, swinging between gains and losses even as the US Federal Reserve announced a 25-basis-point rate cut on Wednesday.


The Sensex, which began the day slightly higher, soon slipped into the red and was trading at 84,312 during early trade, down 79 points or 0.09 per cent. The Nifty also erased its early gains and inched down to 25,750, lower by 8 points or 0.03 per cent.


"From a technical standpoint, Nifty holds immediate support at 25,600–25,650, while the 25,850–25,900 zone continues to act as a strong resistance that has repeatedly halted upward momentum," analysts said.


"A decisive breakout above this resistance band will be essential to re-establish bullish traction. Conversely, a sustained move below the identified support range may extend the ongoing consolidation phase," they added.


Infosys, Eternal, Tata Steel, Maruti Suzuki, Adani Ports, HCL Tech, SBI, TCS, L&T, and Tech Mahindra were among the early gainers on the Sensex, rising up to 1.1 per cent. However, Titan, Power Grid, Bharti Airtel, NTPC, Asian Paints, ITC, Reliance Industries, Bajaj Finserv, and ICICI Bank dragged the market with mild losses.


In the broader market, the Nifty MidCap index slipped 0.17 per cent, while the Nifty SmallCap index dropped 0.32 per cent.


Among sectors, IT stocks led the gains, with the Nifty IT index rising 0.70 per cent. This was followed by the Nifty PSU Bank index, which was up 0.65 per cent, the Nifty Metal index up 0.4 per cent, and the Nifty Auto index up 0.12 per cent.


On the other hand, FMCG stocks came under pressure, pushing the Nifty FMCG index down by 0.26 per cent.


Analysts said that domestic markets tracked global cues cautiously as investors assessed the impact of the Fed’s latest rate cut on capital flows and economic growth.


Meanwhile, on the flows front, FIIs offloaded equities worth Rs 1,651 crore on December 10, while DIIs recorded net purchases of more than Rs

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