Mumbai (Maharashtra) [India], October 1 : Indian stock market indices Nifty and Sensex opened flat on Tuesday as the markets entered a consolidation phase after foreign investors turned towards other Asian markets like China and Hong Kong.
The Nifty 50 index opened with a marginal dip of 22.40 points or 0.09 percent at 25,788 points, while the BSE Sensex opened at 84,257 with a decline of 42 points or 0.05 percent.
Experts noted that the shift in flows from Indian markets to other Asian markets has led to a consolidation phase in Indian markets.
"Market is likely to move into a consolidation phase in the near-term. One significant factor that is influencing foreign portfolios is the outperformance of the Chinese stocks which is reflected in the massive surge in the Hang Seng index by around 18 per cent in September. This surge has been triggered by hopes of revival in the Chinese economy in response to the monetary and fiscal stimulus announced by the Chinese authorities. This means FIIs may continue to sell in India and move some more money to better performing markets. FII selling is unlikely to impact the Indian market significantly since the massive domestic money can easily absorb whatever the FIIs are selling. Investors can use dips to buy quality large caps which are fairly valued" said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
In the sectoral indices, except Nifty FMCG, Nifty Metal, Nifty Media, and Nifty Pharma, other sectoral indices opened with gains.
The top gainers on the Nifty 50 list include Tech Mahindra, Wipro, and Infosys, while the top losers include Asian Paints, JSW Steel, Hindalco, and Tata Steel. The metal sector's shares are seeing profits after a rally last week.
"It is believed that the current market structure is weak and volatile for traders, as long as it continues to trade below 26000/85000. Weak sentiment is likely to persist, and below this level, the market may decline towards 25700-25500/84000-82400" said Shrikant Chouhan, Head Equity Research, Kotak Securities.
In the Asian markets, China's and Hong Kong's markets are closed for a holiday after a strong rally on Monday, while Japan's Nikkei 225 index surged 2 percent on Tuesday.