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Stock market opens to fluctuations, eyes on global and domestic factors for market resilience

ANI   

Stock market opens to fluctuations, eyes on global and domestic factors for market resilience
Stock Market2 min read
Mumbai (Maharashtra) [India], January 8 (ANI): The stock market witnessed early fluctuations and eventually entered negative territory at the beginning of the trading day on Monday.

The Sensex recorded a low opening, down by 137.69 points at 71923.44, while the Nifty also started with a 28.10 points dip, opening at 21,682.70.

Among the Nifty companies, 20 experienced advances, while 30 faced declines.

Indian markets are poised for a relatively quiet opening, influenced by Nifty Futures, with GIFT Nifty trading at 21771.

Varun Aggarwal, founder and managing director, Profit Idea said, "Investors are closely monitoring corporate results and global trends, leading to a shift toward large-cap stocks amid rising valuations in mid and small-cap stocks".

He added, "Despite the soft opening, market sentiments remain robust, backed by India's strong economic activity. The market is responsive to macroeconomic data, global bond yields, and investment activities".

In global news, US Initial Jobless Claims were lower than expected at 202K, while the federal government's gross national debt reached a record USD34 trillion, presenting challenges.

The US Federal Reserve indicates that inflation is under control, signaling a potential lower target for the federal funds rate by the end of 2024.

US Private sector employment rose by 164,000 in December, exceeding market expectations. Nonfarm Payrolls increased by 216,000, surpassing the market expectation of 170,000.

The S&P Global US Composite PMI remained stable at 50.9 in December.

Eurozone and UK PMIs, Germany's stable unemployment rate at 5.9 per cent, and positive economic indicators from Japan and China are also noteworthy.

In India, foreign exchange reserves reached USD 623.20 billion, the Central Bank of India reported a 14.91 per cent YoY growth in gross advances, and the National Statistical Office estimates a 7.3 per cent growth in the current financial year.

FPI investments in Indian debt turned positive in 2023, and HSBC India Manufacturing PMI fell to 54.9 in December.

UPI transactions in 2023 reached 117.6 billion in volume and Rs 183 trillion in value.

The RBI implemented changes for CPs and NCDs issuance, emphasizing transparency. Insurance companies can now invest in infrastructure debt funds of NBFCs.

As India prepares for the interim budget, insiders suggest fiscal discipline over populist spending. REC signed a pact with Bank of Baroda for joint finance, and India's fiscal deficit for the first eight months stood at 50.7 per cent of annual estimates.

In summary, the financial landscape reflects a mix of global and domestic factors shaping market dynamics and economic outlooks.(ANI)

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