- Sensex near 80,500, Nifty slightly below 24,600, market largely rangebound.
- Global factors, such as reduced US recession risk, begin to take center stage.
- Analysts point to mixed global cues as the driver of market movement today.
The Indian stock market remained relatively flat today, with the Sensex trading around 80,500 and the Nifty below 24,600.
Domestic triggers, such as the recent earnings season and the Reserve Bank of India’s meeting, have been factored in, leaving investors to focus on global developments for direction.
Markets Stay Volatile as Global Factors Dominate; Nifty, Sensex Hold Ground
However, the diminishing fear of a US recession has offered a glimmer of optimism. Goldman Sachs recently reduced its recession prediction for the US to just 20%, citing strong retail sales data and a decline in jobless claims. This has provided some reassurance to global markets, but traders remain cautious as further economic data and geopolitical developments could impact sentiment.
On the global front, markets found some relief in the diminishing probability of a US recession. Goldman Sachs lowered its recession forecast for the US to 20%, driven by strong consumer data and a decline in jobless claims. This eased fears of a global economic slowdown and provided a positive influence on market participants.
Despite this, concerns remain around inflation, central bank policies, and geopolitical risks, all of which have kept investors on edge. Volatility in global oil prices, coupled with inflationary pressures, continues to weigh on market outlooks across major economies.
In addition, the Bank Nifty remained particularly volatile, reflecting the ongoing uncertainties in the financial sector. While there is cautious optimism in light of the US developments, other global risks persist, keeping traders wary of making any significant moves.
Overall, while the market has shown resilience in the face of global uncertainties, investor sentiment remains cautious. As global and domestic factors continue to unfold, markets are likely to stay volatile in the near term.
“Global sentiment will largely dictate market movement,” say analysts as markets focus on global developments following the RBI meeting and earnings season.
