Markets Flat as Indian Earnings Season Kicks Off Amid Global Gold Rally

The domestic stock markets remained largely stagnant on Wednesday, with both benchmark indices showing slight upward movement. The Nifty 50 index opened at 25,145.05, recording a 0.15 percent rise, while the BSE Sensex began at 82,072.34, gaining 0.18 percent.

Experts pointed out that Foreign Portfolio Investors (FPIs) experienced an unusual positive day with net inflows on Tuesday, predominantly in financial stocks, especially public sector banks. Despite this, their overall position continues to be largely net short, as persistent selling pressure shows no sign of abating. Ajay Bagga, a Banking and Market Expert, stated that the initiation of Indian main board earnings this week would likely set the market's future trajectory, coinciding with infrastructure announcements by PM Modi in Mumbai.

Despite a day of net inflows, FPIs remain cautious, with Bagga noting the impact of the ongoing primary market excitement on secondary market liquidity. As substantial IPOs draw in significant investments this month, the potential for disciplined fundraising could emerge from poor initial public offerings on the main board. Meanwhile, in anticipation of Diwali and the corresponding rise in consumer spending, experts like Bagga predict a mild upward market trend, especially if U.S. economic conditions improve and corporate earnings exceed expectations. The India VIX's current subdued level further supports a cautiously optimistic outlook.

Sector-wise, Nifty 100, Nifty 200, Nifty Midcap 100, and Nifty Smallcap 100 opened positively, alongside all sectoral indices except Nifty FMCG, Nifty PSU Bank, and Nifty Realty. Notably, Nifty IT increased by 1 percent. The primary market saw Tata Capital's public issue find substantial interest, with subscriptions nearing full allocations, while LG Electronics' issue saw a strong start. Globally, gold prices reached new heights, surpassing $4,000 an ounce for the first time, due to historic rallies amid a challenging equities landscape.

(With inputs from agencies.)