Indian equity indices opened on a flat note on Friday, reflecting a mixed performance in global markets.
As of 9:43 a.m., the BSE Sensex was down by 129 points, or 0.16%, at 80,923, while the NSE Nifty dropped 21 points, or 0.09%, to 24,789.
Despite the muted start, broader market trends showed a positive tilt. On the National Stock Exchange (NSE), 1,122 stocks were advancing, compared to 1,083 stocks declining.
Also Read: Indian Stock Markets Climb Amid Global Optimism; Sensex & Nifty Close Higher
In the Sensex index, Tata Motors, Reliance, Sun Pharma, Mahindra & Mahindra (M&M), Bajaj Finserv, ICICI Bank, and Hindustan Unilever (HUL) emerged as top gainers. Conversely, Titan, Infosys, Wipro, Tata Steel, UltraTech Cement, ITC, Asian Paints, NTPC, Bajaj Finance, and State Bank of India (SBI) were among the top losers.
Choice Broking analysts provided insight into the Nifty’s potential movements, noting that after the flat opening, support levels might be found at 24,700, 24,650, and 24,550. On the upside, immediate resistance could be at 24,900, followed by 24,950 and 25,000.
Midcap and Smallcap Stocks
Midcap and smallcap stocks experienced selling pressure, with the Nifty Midcap 100 index down 149 points, or 0.25%, at 58,700, and the Nifty Smallcap 100 index falling 38 points, or 0.20%, to 19,062.
Sectoral performance mix, with gains in Auto, PSU Bank, Pharma, Realty, and Energy sectors, while Media and IT sectors lagged.
Asian markets showed varied performances. Markets in Tokyo, Shanghai, Bangkok, and Jakarta were advancing, while Seoul and Hong Kong were experiencing declines. US markets had closed lower on Thursday.
PSU Stocks
Market experts noted significant sectoral shifts, particularly in PSU stocks, which have seen a decline after a period of strong returns. The PSU banking sector’s impressive turnaround from losses of Rs 87,000 crore in FY 2018 to profits of Rs 1.41 lakh crore in FY 2024 appears to be losing momentum, although valuations remain appealing.
Attention is also focus on global economic cues, particularly Jerome Powell’s upcoming comments at the Jackson Hole symposium. Experts anticipate that Powell may adopt a dovish stance, potentially signaling a rate cut in September.
Foreign Institutional Investors (FIIs) purchased equities worth Rs 1,371 crore on August 22, while Domestic Institutional Investors (DIIs) bought equities worth Rs 2,971 crore on the same day.
