Sensex, Nifty open flat amid weak global cues and concerns over US regional banks

New Delhi [India], October 17 (ANI): Indian stock markets opened almost flat in red on Friday, tracking weak global cues and concerns over the health of US regional banks.
The Nifty opened at 25,546.85, down 38.45 points or 0.15 per cent, while the Sensex opened at 83,352.55, down 115.11 points or 0.14 per cent.
On Thursday, Indian markets had risen on the back of strong global momentum and expectations of a possible trade deal with the United States in November.
Ajay Bagga, Banking and Market expert told ANI "The markets were not fazed by Trump's claims and Indian government sources denial of a move from India not to buy Russian oil. If Trump meets Putin at Budapest and strikes a deal, the whole issue will become irrelevant. Indian markets after 13 months of stark underperformance, are setting up for a recovery.
He added "The RBI intervention to upend Rupee shorting speculation in the domestic and NDF markets also bolstered confidence. With big results expected over the next three days markets remain in an overbought zone but the momentum remains positive".
Several companies will announce their second quarter earnings today. They include Reliance Industries, Dixon Technologies (India), JSW Energy, JSW Steel, Polycab India, Central Bank of India, CESC, CRISIL, Dalmia Bharat, DCB Bank, Havells India, HFCL, Himadri Speciality Chemical, India Cements, IndiaMART InterMESH.
Earlier on Thursday, there was a "hope trade" when Trump revealed that he had spoken with Putin and planned to meet him soon in Budapest to seek a peaceful resolution to the Ukraine conflict.
However, optimism was later overshadowed by news of credit write-offs by several US regional banks, which triggered a wider sell-off.
While the earlier bankruptcies of Tricolor Holdings and First Brands Group had already been priced in by the markets, the fresh disclosures on banking sector stress unnerved investors. Nearly USD 100 billion was wiped out from the market capitalisation of more than 70 US banks, as shares plunged following reports of links between several banks and borrowers accused of fraud.
The situation worsened after the US Senate failed to find common ground yet again, with the 10th vote to reopen the US government failing on the 16th day of the ongoing shutdown.
Market worries proved stronger than the earlier positive sentiment. Despite ongoing fears of an AI bubble, US-China trade tensions, and the government shutdown, US markets initially held firm. However, concerns over regional banks' credit quality led to a sharp decline.
Other Asian markets have opened lower on the back of the US banks worries and on the US-China trade tensions. US bond yields fell, oil fell, cryptos fell and the US dollar fell on Thursday in US trading while Gold continued its rise for a 9th week. (ANI)