Indian Markets Start off Steady as Investors Tread Carefully

On this Wednesday morning, **Indian equity markets** opened with a relatively flat tone, showing slight dips. Despite **positive signals from global peers**, investors are feeling the heat as they approach the monthly derivatives expiry and await crucial **U.S. economic data** later this week.

Market Opening Numbers

The benchmark **BSE Sensex** began the day at 84,836.45, down by 77.59 points or 0.09 percent from its last close of 84,914.04. Meanwhile, the broader **NSE Nifty50 index** commenced at 25,899.45, slipping 40.95 points or 0.16 percent compared to Tuesday’s finish of 25,940.40.

Winners and Losers

As of 9:30 am, **Power Grid Corporation** emerged as the top gainer on the NSE, soaring by 3.99 percent. Other notable mentions included **Mahindra & Mahindra** (up 1.57 percent), **Hindalco Industries** (1.08 percent), **Tata Steel** (0.60 percent), and **Eicher Motors** (0.60 percent). Conversely, the market saw some declines with **HCL Technologies** down 0.93 percent, **Tech Mahindra** down 0.92 percent, and **Britannia Industries** down 0.77 percent.

Global Market Influences

Market feelings were shaped by mixed cues from around the world. **Asian markets** opened positively after **China** introduced stimulus measures aiming to invigorate its economy. Notably, the **People’s Bank of China** cut the one-year medium-term lending facility rate from 2.3 percent to 2 percent, which briefly bolstered the **Chinese yuan** to its strongest level in over a year.

Experts Weigh In

**Prashanth Tapse**, Senior VP (Research) at **Mehta Equities Ltd**, offered some insights, stating, “Markets may see a subdued start amid sluggishness in the Gift Nifty index even as most other Asian indices exhibit optimism after China’s stimulus announcements to boost its economy. Therefore, we might witness some traction in local commodities, particularly metals.”

Focus on Metals and Oil

Today, metal stocks are anticipated to gain attention, especially since base metal prices soared on the **London Metal Exchange** following China’s stimulus announcement. Furthermore, mining stocks could draw interest as mining prices increased by 7 percent in the Asian market.

The oil and gas sector is also expected to be in the spotlight. **Brent crude oil** prices climbed by 2 percent to reach a one-month high of $75.2 per barrel. This surge was influenced by **OPEC+** raising global demand forecasts and escalating tensions in the Middle East after an Israeli strike on **Hezbollah** targets in **Lebanon**.

Gold Hits New Heights

In commodities, **gold prices** have reached another record, hitting $2,660 an ounce, fueled by weak U.S. data that supports deeper rate cuts. **Rahul Kalantri**, VP Commodities at **Mehta Equities Ltd**, remarked, “Gold had an impressive rally on Tuesday, breaking yet another record, with silver not far behind, hitting its best level in nine weeks. Investors are turning to these safe-haven metals as uncertainty persists.”

Market Trends and Investors’ Watch

The upcoming monthly derivatives expiry, set for Thursday, is likely to lead to sideways movements in intra-day trading. **Vikas Jain**, Head of Research at **Reliance Securities**, noted, “NIFTY-50 has closed at an all-time high near the 26,000 levels and we anticipate some retracement from the higher range of 26,050-26,180, as markets could be volatile with respect to rollover movement.”

Investors are keenly awaiting key **U.S. PCE inflation data** scheduled for release on Friday, which may influence future rate cut expectations. Recent data showed that **U.S. consumer confidence** experienced its largest single-month drop in over three years, falling to 98.7 for September.

Institutional Activity

In terms of institutional actions, **Foreign Institutional Investors (FIIs)** sold shares amounting to a net ₹2,784.14 crore on Tuesday, while **Domestic Institutional Investors (DIIs)** purchased shares worth a net ₹3,868.31 crore, according to provisional data.

As the trading session unfolds, participants will closely monitor stock-specific movements and global cues for any further direction.