Sensex and Nifty open flat as global markets show mixed signals

Mumbai, Aug 23: Indian equity indices opened flat on Friday, reflecting mixed signals from global markets. As of 9:43 a.m., the Sensex was down 129 points, or 0.16%, at 80,923, while the Nifty fell 21 points, or 0.09%, to 24,789.

Despite the flat opening, broader market trends were positive. On the National Stock Exchange (NSE), 1,122 shares were advancing, compared to 1,083 shares declining. Within the Sensex, Tata Motors, Reliance, Sun Pharma, M&M, Bajaj Finserv, ICICI Bank, and HUL were leading the gains. Conversely, Titan, Infosys, Wipro, Tata Steel, Ultratech Cement, ITC, Asian Paints, NTPC, Bajaj Finance, and SBI were among the top losers.

Choice Broking's analyst noted that after the flat opening, the Nifty could find support at 24,700, with additional support levels at 24,650 and 24,550. On the upside, immediate resistance is seen at 24,900, followed by 24,950 and 25,000.

Selling pressure was observed in midcap and smallcap stocks, with the Nifty midcap 100 index down 149 points, or 0.25%, at 58,700, and the Nifty smallcap 100 index declining by 38 points, or 0.20%, to 19,062.

Sector-wise, Auto, PSU Bank, Pharma, Realty, and Energy sectors showed notable gains, while Media and IT sectors lagged.

Asian markets were mostly positive, with Tokyo, Shanghai, Bangkok, and Jakarta trading higher. In contrast, Seoul and Hong Kong experienced declines. US markets closed lower on Thursday.

Market experts highlighted a shift in sectoral dynamics. The recent rally in PSU stocks, which saw remarkable returns, appears to be losing momentum. Although PSU banking stocks transformed from significant losses of Rs 87,000 crore in FY 2018 to profits of Rs 1.41 lakh crore in FY 2024, the turnaround story seems to be running its course, although valuations in this segment remain appealing.