Sensex, Nifty likely to remain subdued today

Domestic markets are likely to open flat and remain listless today. The focus will be on big ticket banking and finance companies such as ICICI Bank, Kotak Mahindra Bank, Can Fin Homes, IDBI, IDFC First Bank and IREDA.

Participation from global investors will be low and even domestic investors will be in a holiday mood, said analysts.

As the US stocks overnight closed sharply higher, analysts expect domestic market to see a positive opening.

Vinod Nair, Head of Research, Geojit Financial Services, said that subdued performance was reflected in the market amidst weakening global cues and elevated domestic valuations in mid- and small caps, eroding investor confidence.

“Strong US retail sales and rising US bond yields diminish expectations of a swift Fed rate cut, redirecting investor focus to safer bonds,” he said.

FIIs maintained a risk-off stance amid concerns over persistent interest rates and initial Q3 results, suggesting a potential domestic earnings slowdown. Looking ahead, the interest rate decisions of the BoJ and ECB, along with US GDP data, will drive market dynamics, he further said.

Shrey Jain, Founder and CEO SAS Online – India’s Deep Discount Broker, said, “Even though the market got better on Friday, investors should be cautious and not rush to buy when the prices dip.”

“The correction in the market may still be happening until the Nifty goes above the crucial support range of 21,500-21,550, which is currently acting as a strong barrier,” he cautioned.