Sensex, Nifty open flat; ITC share price down 3%

Benchmark stock market indices opened flat on Tuesday, as cautious sentiment prevailed ahead of key announcements from the RBI MPC scheduled to begin on December 4, 2024.
The S&P BSE Sensex was up 39.47 points to 80,287.55, while the NSE Nifty50 added 21.05 points to 24,297.10, as of 9:25 AM.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the underlying resilience of the market is evident in its ability to bounce back.
“Market is focusing not on the GDP growth slowdown but on the likely policy response to this slowdown. Banking stocks bouncing back yesterday indicates that the market is expecting a CRR cut on Friday, which will boost the profitability of banks. The strength in market heavyweights like Reliance and HDFC Bank can impart resilience to the market.,” he added.
Adani Ports led the gainers with a surge of 3.64%, followed by Shriram Finance which advanced 3.19%. State Bank of India (SBI) moved up 1.74%, while Cipla gained 1.09%. IndusInd Bank rounded out the top performers with an increase of 1.06%.
ITC stocks were down nearly 3% in early trade, while Trent declined 1.18%. Bharti Airtel slipped 1.09%, and Sun Pharma dropped 0.83%. Mahindra & Mahindra (M&M) completed the top losers list with a decrease of 0.71%
“News of higher GST proposals on products like tobacco can impact stocks like ITC and tax reductions on insurance premiums can be beneficial to insurance stocks,” said Vijayakumar.
“Looking ahead, even though the key indices remain tentative and are likely to hover within a range, the broader market seems to have plenty of activity, so one must look for opportunities outside the broader space. Also, one must approach the markets with firm risk management until we witness any clarity in the overall market trend,” said Sameet Chavan, Head Research, Technical and Derivative – Angel One.