Indian benchmark indices, the Nifty50 and Sensex, opened on a flat note on Thursday, reflecting a mixed trend in global markets. The BSE Sensex started the day with a marginal gain of 10 points, opening at 76,414.52, while the Nifty50 saw a slight dip of 25 points, beginning the day at 23,128.30.
Among the top gainers on the BSE were UltraTech Cement and HDFC Bank, while Hindustan Unilever (HUL) and Nestle were among the major laggards. Similarly, on the NSE, UltraTech Cement and Wipro stood out with positive momentum, while FMCG giants HUL and Nestle saw losses.
The broader markets, however, displayed a mixed outlook. The Nifty SmallCap index slipped by 0.17%, while the Nifty MidCap index traded 0.14% lower. This indicated that while large-cap stocks were experiencing a relatively stable start, mid and small-cap stocks faced some pressure.
Sector Performance
The sectoral performance on the Nifty was varied. The Nifty IT index emerged as the top performer, gaining 1%, reflecting investor optimism in the technology sector. This was driven by the rally in global tech stocks, particularly in the US market, where technology shares like Oracle and Nvidia surged, fueled by growing interest in artificial intelligence (AI).
On the other hand, the Nifty FMCG index, which tracks companies in the fast-moving consumer goods sector, was the biggest loser of the day, falling by 1%. Major FMCG stocks like HUL and Nestle dragged the index down, as investor sentiment remained cautious in the wake of slower growth in some key global markets.
Global Markets Overview
Asian markets were a mixed bag on Thursday, with investors reacting to a range of economic data. In Australia, the ASX 200 fell by 0.42%, reflecting concerns over domestic growth. Meanwhile, Japan’s Nikkei and Topix indices posted gains of 0.5% and 0.42%, respectively, as investors remained hopeful about Japan’s economic recovery. South Korea’s Kospi, however, dropped sharply by 0.96%, following a report indicating that the country’s GDP grew by just 1.2% year-over-year in Q4 2023, marking the slowest growth pace since Q2 2023.
Elsewhere in Asia, Hong Kong’s Hang Seng climbed by 0.75%, and China’s CSI 300 rose 1%, signaling positive sentiment among investors. The mixed performance across Asia was attributed to a combination of global factors, including economic data, corporate earnings, and expectations around central bank policies in the region.
The economic calendar in Singapore also caught investors’ attention as inflation data for December is due soon. Meanwhile, the Bank of Japan is holding a two-day policy meeting, with Governor Kazuo Ueda hinting at a possible rate hike, adding a layer of uncertainty to regional markets.
US Markets Provide Positive Lead
Overnight, US markets offered a strong lead for global markets. The S&P 500 hit a fresh all-time high, rising by 0.61% to close at 6,086.37. The Nasdaq Composite surged by 1.28%, closing at 20,009.34, as investors piled into tech stocks amid optimism around AI advancements. The Dow Jones Industrial Average also saw a modest gain of 0.3%, adding 130.92 points to finish at 44,156.73.
The strong performance of the US market helped lift sentiment across global markets, providing some support to Indian equities despite mixed economic signals from Asia.
