Sensex, Nifty open flat as investors exercise caution ahead of key data

Benchmark stock market indices opened flat on Tuesday as investors remain cautious ahead of US inflation data and the upcoming Reserve Bank of India policy decision.

At 9:27 am, the S&P BSE Sensex was down 6.25 per cent at 65,947.23, while the NSE Nifty 50 was up 0.01 per cent at 19,599.70.

Broader markets were also mostly trading flat in early trade amid volatility. Most sectoral indices were trading flat or in negative territory, except Nifty Pharma which gained 0.90 per cent.

The top five gainers on the Nifty 50 were Hero MotoCorp, Cipla, Dr Reddy's, Titan and Coal India. On the other hand, the top drags were Adani Ports, Adani Enterprises, Divi's Laboratories, Eicher Motor and Nestle India.

Ameya Ranadive, a research analyst at Choice Broking, suggested that the Sensex and Nifty would open lower today, influenced by the GIFT Nifty's performance. He highlighted that foreign investors sold stocks worth Rs 1,892.77 crore, while Indian investors purchased stocks worth Rs 1,080.80 crore on August 7. This indicates the ongoing weakness in global markets.

"Looking at the technical details, the Nifty index seems to have strong support at levels around 19,350-19,300. This suggests that if the index falls, it might find stability around these levels," he said.

"It's important to keep an eye on these levels because they could have a significant impact on how the market behaves during the day," he added.

While Q1 earnings have largely influenced the market mood since early July, the last few trading sessions have witnessed increased volatility due to weakness in global markets.

Investors are expected to take cues from the upcoming US inflation data and the RBI's policy decision.