Following a bullish start on Monday, benchmark stock market indices lost steam as investors monitored international cues and awaited the start of the Reliance Industries Limited Annual General Meeting (AGM) at 2 o'clock.
At 9:16 a.m., the NSE Nifty50 was up 0.29 percent at 19,322.70, while the S&P BSE Sensex opened 0.25 percent higher at 65,044.97. The benchmark indices, however, plummeted mere minutes into the trading session, indicating that investors were being cautious. The larger market indices also traded in a choppy manner.
Nifty Bank, Nifty Financial Services, and Nifty IT—heavyweight sectoral indices—fell in early trade, while Nifty Auto, Nifty Metal, Nifty Realty, and Nifty Pharma rose.
On the Nifty50, Cipla, Adani Enterprises, M&M, L&T, and Adani Ports were the top 5 gainers.
Adani Enterprises, Cipla, M&M, L&T, and Adani Ports were the top 5 gainers on the Nifty50, while HCL Tech, Britannia, Dr. Reddy's, Bharti Airtel, and Hindalco were the top losers on the 50-share index.
Before the Reliance AGM, where the firm is set to make some significant announcements, domestic markets are likely to remain cautious.
According to Pravesh Gour, Senior Technical Analyst at Swastika Investment Ltd, "News reports suggesting that during the Reliance AGM, there might be announcements about updates regarding the IPO timelines for its telecom and retail businesses, the progress of 5G rollout, a comprehensive roadmap for JioAir Fiber, and investments in clean energy."
"The counter has shown profit booking from the higher levels after the breakout of the long trend line and triangle pattern formation on the longer timeframe," he continued. It has again retested the area around Rs 2420 where it last broke through. Since the counter is trading above its significant moving averages (the 100 and 200 DMA), its structure is still profitable for long-term investors, he continued.
Om Mehra, a research analyst at Choice Broking, stated that it is expected that the domestic markets will remain weak.
The Indian stock market has shown a major declining tendency over the previous week, and unless benchmark Indices close above 19,550 levels, this trend may persist. The Reliance Annual General Meeting would likely set the tone for the market, he added.
