Nifty at 24,604.45 and Sensex at 81,476.76 open flat as volatility looms on F&O expiry day

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Indian stock markets opened flat on Thursday as the ongoing consolidation continued. However, with the expiry of the futures and options (F&O) contracts today, experts predict increased volatility in the markets.

The Nifty 50 index started the session at 24,604.45 points, down by 37.35 points or 0.15 per cent. Meanwhile, the BSE Sensex opened at 81,476.76 points, down by 49 points or 0.06 per cent.

Market analysts pointed out that the expiry of F&O contracts today could lead to heightened volatility, although the overall trend of consolidation persists. They also noted that US Consumer Price Index (CPI) inflation figures were in line with expectations, which has further solidified the probability of a Federal Reserve rate cut in the near future.

Ajay Bagga, a banking and market expert, mentioned that "The Indian markets are consolidating within a narrow range. Some volatility can be expected today due to the F&O expiry. With the Fed rate cut now largely priced in, the focus will shift to the inflation data expected today, which is anticipated to show a month-on-month drop in the CPI. We expect consolidation followed by a rise towards the end of the year."

Bagga also pointed to the US Federal Reserve as a key factor influencing market movements. With US CPI data matching estimates, the probability of a rate cut by the US central bank has surged to over 98 per cent, providing a positive outlook for the US markets.

At the time of writing, in the Nifty 50 list, 23 stocks had advanced, while 27 had declined. The top gainers included Tech Mahindra, Bharti Airtel, TCS, and Wipro, while the top losers were Apollo Hospital, SBI Life, BPCL, Trent, and Titan.

Sectoral indices saw mixed performance. Nifty Bank, Nifty IT, Nifty Metal, Nifty Pharma, and Nifty Healthcare all registered gains, while other sectors showed a decline.

Akshay Chinchalkar, Head of Research at Axis Securities, noted that indecision continued to prevail in the Nifty 50. "Resistance at 24,700 has held strong, and the market has formed a short-term 'pennant' pattern with rising lows and falling highs, indicating the potential for an upside breakout. If the support at 24,500 holds, we may see the market target the 24,800-25,000 zone," he said.

On the foreign institutional investment front, foreign investors sold equities worth Rs 1,012 crore on Wednesday, while domestic institutional investors (DIIs) bought equities worth Rs 2,000 crore.

Across other Asian markets, indices were in the green. Japan's Nikkei 225 surged by more than 1.28 per cent, Taiwan's Weighted Index rose by 0.93 per cent, Hong Kong's Hang Seng gained 0.68 per cent, and South Korea's market continued its recovery, up 0.35 per cent following recent political instability.

Brent Crude was trading at USD 73.66, showing a marginal gain.

(With inputs from ANI)