Nifty, Sensex erase early gains, trade flat amid tepid global cues; FMCG, pharma see selling pressure

FIIs bought equities worth Rs 35,000 crore over nine consecutive sessions.

Frontline indices Nifty 50 and Sensex opened the Tuesday, April 29 session, on a firm note, with investors buying despite a cautious global sentiment.

At 09:44 am the Sensex was up 0.12 points or 0 percent at 80,218, and the Nifty was down 2.50 points or 0.01 percent at 24,326. About 1984 shares advanced, 881 shares declined, and 146 shares were unchanged.

On the sectoral front, the automobile pack saw some cheer in trade, as U.S. President Trump's administration indicated the impact of tariffs on the sector shall be reduced.

President Donald Trump's administration will move to reduce the impact of his automotive tariffs by alleviating some duties imposed on foreign parts in domestically manufactured cars and keeping tariffs on cars made abroad from piling on top of other ones, officials said.

The Nifty Auto index gained almost one percent, but trimmed its winnings. The banking pack also reported strong gains, lead by the public bank index, which rallied two percent on open, but was higher by 0.7 percent after paring some gains.

The broader markets outperformed the benchmark indices, with the smallcap and midcap gauges soaring nearly one percent, as against half a percent recorded by the benchmarks.

Follow our market blog to catch all the live updates

Global markets flat

Overnight, the S&P 500 and the Dow ended in positive territory at the conclusion of a choppy session on Monday, and gold advanced as investors looked for signs of progress in tariff negotiations at the top of an eventful week of corporate earnings and economic data. The Dow Jones Industrial Average rose 0.28 percent, the S&P 500 rose 0.06 percent and the Nasdaq Composite fell 0.10 percent.

Asian stocks had a cautious open as investors awaited a slew of corporate earnings and economic data this week that will give an early indication of the impacts from President Donald Trump’s tariff war.

Foreign investors buy

Foreign Institutional Investors (FIIs) have resumed buying in India, pouring in nearly Rs 35,000 crore into domestic equities over nine consecutive sessions.

In the previous session, FIIs bought equities worth Rs 2,474 crore on April 28 as they extended buying, turning net buyers for the month. However, Domestic institutional investors (DIIs) extended their buying on the second day as they bought equities of Rs 2,817 crore.

"India’s potential relative outperformance compared to other large economies can support the FII inflows and impart resilience to the market," VK Vijayakumar, Chief Investment Strategist, Geojit Investments said.

Technical levels to watch

"On the downside, immediate support is seen at the 24,200 level, with a stronger base around the 24,000 zone. On the upside, the 24,500 level remains a key resistance. A decisive breakout above this level could open the door for a move towards the 24,700 mark," said Hardik Matalia, Derivative Analyst, Choice Broking.

Strategy for investors, traders

Given the current momentum, traders are advised to maintain a disciplined approach with strict risk management while capitalizing on short-term opportunities. Buying on dips may be considered as long as the Nifty index holds above the 23,800 level. "However, due to prevailing global trade war tensions, it is prudent to avoid large overnight positions and exercise tight risk control," shared Matalia.

"Traders should remain selective in their stock-picking approach. No aberrations were observed on the Ind-Pak front over the weekend, which has triggered positive momentum. However, we should avoid complacency and refrain from taking aggressive overnight positions," shared Sameet Chavan, Head Research, Technical and Derivative - Angel One.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.