Nifty and Sensex open in the red

Nifty and Sensex open in the red

The Indian stock market showed signs of a weaker start on Tuesday after the Nifty and Sensex hit fresh highs on Monday. Asian markets witnessed risk aversion, which could potentially impact Indian benchmark indices. Despite the positive global stock market climate, the Nifty 50 and Sensex 30 benefited from robust economic data in India and the global equity rally.

On Monday, both indexes closed higher, with the Nikkei 225 index in Japan hitting the 40,000 point mark. NTPC, Power Grid and others were among the top performers in the Nifty, while companies like Suzlon and Inox Wind posted losses. Moody's raised its forecast for India's GDP growth in 2024 to 6.8% from 6.1%, indicating positive economic development.

Investors are now turning their attention to Federal Reserve Chairman Powell and upcoming US jobs data due out this week. The US market recorded positive developments on Friday despite declining business activity in the manufacturing sector. It is expected that the US Federal Reserve could potentially implement easing measures, which could influence markets.

In the midst of these developments is the Indian gross domestic product, which grew by 8.4% in the third quarter compared to the previous year. With the upcoming Mahashivratri festival, the trading week in India will be shortened. Key risks remain, including US Federal Reserve policy, US employment data and potential stimulus measures from China's National People's Congress. Investors should keep these factors in mind to make informed investment decisions.