After a four-session rally, investors took a breather, leading to a flat opening for the stock market on Wednesday

New Delhi [India], August 21 : The stock market started on a flat note on Wednesday, as investors took a breather following a four-session upward trend.

The Nifty at the National Stock Exchange (NSE) began at 24,680.50, gaining 18.30 points, while the BSE Sensex started at 80,667.30, down by 135.61 points. Analysts indicate that the Indian stock market is closely monitoring global trends this week.

Sectoral stocks on the NSE showed gains in Auto, FMCG, Media, Metal, Pharma, Healthcare, Consumer Durables, and Oil and Gas sectors.

Conversely, Reality, Private Banks, PSU Banks, IT, and Financial sectors opened in the red.

The leading gainers at the NSE during the initial hours were Divi's Laboratories, Dr Reddy's Laboratories, SBI Life, Nestle India, and Hindalco. On the other hand, UltraTech Cement, ICICI Bank, Kotak Mahindra Bank, IndusInd Bank, and Tata Steel were the top losers early in the trading session.

Ajay Bagga, Market and Banking Expert, noted that the structural setup, with declining inflation, robust macroeconomic conditions, and resilient domestic liquidity inflows, provides strength to the Indian markets. He also mentioned that the minutes from the last FOMC meeting, expected later today, will be scrutinized for further monetary signals. Bagga anticipates that Fed Chair Powell's speech at the Jackson Hole symposium on the 23rd will be dovish, offering additional support to the markets. He remains positive about the market outlook and suggests buying on dips in the Indian markets.

Shrikant Chauhan, Head of Equity Research at Kotak Securities, also expressed optimism, highlighting positive momentum in the benchmark indices.

Chauhan noted that buying interest was seen in banking and financial stocks on Tuesday, while some profit-taking occurred in select FMCG and media stocks during intraday trading. From a technical standpoint, he described the overall market structure as bullish but recommended that day traders consider buying on dips as a preferable strategy.

In global markets, U.S. stocks closed slightly lower on Tuesday, with the Nasdaq Composite falling 0.33 percent, the S&P 500 decreasing 0.20 percent, and the Dow Jones down 0.15 percent. Asian markets showed mixed results, with Japan's Nikkei 225 dropping 0.77 percent and South Korea's KOSPI falling 0.17 percent, while China's Shanghai Composite rose 0.14 percent.

WTI crude is priced at USD 73.09, down 0.78 percent, and Brent crude is at USD 77.11, decreasing 0.71 percent. Foreign institutional investors (FIIs) sold shares worth Rs 1,457.96 crore, while domestic institutional investors (DIIs) purchased shares worth Rs 2,252.10 crore on August 20, 2024.