NewKerala.com

Key Points

Indian stock markets opened lower, tracking weak Asian cues and sectoral declines. Retail investors continue to support the market despite geopolitical tensions. The US Fed's upcoming rate decision remains a key focus for traders. Analysts highlight cooling inflation and economic resilience as factors influencing market sentiment.

Key Points: Indian stock markets open lower amid weak Asian cues and Iran tensions

  • Sensex and Nifty drop amid weak Asian markets
  • Auto and pharma sectors lead losses
  • Retail investors sustain market resilience
  • Fed rate decision in focus
2 min read

Indian stock market opens lower amid weak Asian cues

Sensex and Nifty decline as auto, IT, and pharma sectors drag markets; retail investors remain resilient despite geopolitical risks.

Indian stock market opens lower amid weak Asian cues
"The main contributor to the market resilience is retail investors using every dip as a buying opportunity. – Dr. VK Vijayakumar, Geojit Investments"

Mumbai, June 17

The Indian benchmark indices opened lower on Tuesday amid weak Asian cues as selling was seen in the auto, IT and pharma sectors in the early trade.

At around 9.28 am, Sensex was trading 186.35 points or 0.23 per cent down at 81,609.80 while the Nifty declined 68.20 point or 0.27 per cent at 24,878.30

Nifty Bank was down 30.10 points or 0.05 per cent at 55,914.80. The Nifty Midcap 100 index was trading at 58,732.10 after dropping 36.40 points or 0.06 per cent. Nifty Smallcap 100 index was at 18,482.90 after declining 66.30 points or 0.36 per cent.

According to analysts, US President Donald Trump's latest comments on Iran kept investors on edge regarding the geopolitical outlook.

Despite the escalation of the Iran-Israel conflict, stock markets are steady and resilient. The decline in the US volatility index CBOE suggests that markets are unlikely to correct sharply unless the conflict takes a dramatic turn for the worse, said market experts.

"The main contributor to the market resilience is the retail investors using every dip in the market as a buying opportunity. Valuations do not appear to deter retail investors," said Dr. VK Vijayakumar, Chief Investment Strategist of Geojit Investments Limited.

Meanwhile, in the Sensex pack, Axis Bank, Kotak Mahindra Bank, NTPC, PowerGrid, Adani Ports, ICICI Bank, SBI, TCS and HCL Tech were the top gainers. Whereas, Tata Motors, Sun Pharma, IndusInd Bank, UltraTech Cement, Titan and Bajaj Finance were the top losers.

On the institutional front, foreign institutional investors (FIIs) were net sellers as they sold equities worth Rs 2,287.69 crore on June 16, while domestic institutional investors (DIIs) purchased equities worth Rs 5,607.64 crore.

In the Asian markets, Bangkok, Jakarta, Japan and Seoul were trading in green, whereas Hong Kong and China were trading in red.

In the last trading session, Dow Jones in the US closed at 42,515.09, up 317.30 points, or 0.75 per cent. The S&P 500 ended with a gain of 56.14 points, or 0.94 per cent, at 6,033.11 and the Nasdaq closed at 19,701.21, up 294.39 points, or 1.52 per cent.

The US Federal Reserve's two-day meeting is scheduled to begin on Tuesday and conclude on Wednesday. The central bank is widely expected to maintain interest rates at their current level when the meeting concludes.

"Comments from Chair Jerome Powell regarding the future path of interest rates will be closely scrutinised, particularly given recent signs of cooling inflation coupled with continued economic resilience," said Devarsh Vakil, Head of Prime Research at HDFC Securities.

- IANS

Share this article:

Reader Comments

Here are 6 diverse Indian perspective comments for the stock market article:
R
Rajesh K.
Small correction was expected after the recent rally. Retail investors like me are using this as buying opportunity - SIPs continue regardless of market conditions. Long term investors shouldn't panic over minor dips. 🚀
P
Priya M.
Concerned about FIIs being net sellers again. When will this trend reverse? Our markets need foreign investment to sustain growth. Domestic investors can't carry the entire burden forever.
A
Amit S.
Markets are behaving like Mumbai local trains - full of ups and downs but always moving forward! 😄 Jokes aside, geopolitical tensions are concerning but Indian economy fundamentals remain strong.
S
Sunita R.
Why is media always so negative about minor corrections? This is normal market behavior. Instead of sensationalizing 0.2% drop, they should educate common investors about market cycles.
V
Vikram J.
Good to see domestic institutions buying aggressively. Shows confidence in Indian growth story. But we need to watch Fed decisions carefully - US interest rates affect global liquidity.
N
Neha P.
As a new investor, these small corrections scare me. But my father says "Share bazaar mein dar ke aage jeet hai" (Beyond fear lies victory in stock market). Learning to stay invested for long term.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50