The Indian stock market had a muted start on Friday, with various sectors showing a mix of performance as investor activity focused on auto, IT, financial services, and public sector banking.
At the opening bell, the BSE Sensex stood at 80,139.30, reflecting a modest increase of 74.14 points or 0.09%. Meanwhile, the NSE Nifty began trading at 24,418.05, up by 18.65 points or 0.08%.
Key gainers contributing to this positive sentiment included ITC, Axis Bank, Asian Paints, HCL Technologies, Sun Pharma, Nestle India, and ICICI Bank. Conversely, the market saw losses in IndusInd Bank, NTPC, Mahindra & Mahindra, JSW Steel, Tata Steel, and L&T.
In terms of broader market activity, 890 stocks were gaining on the National Stock Exchange (NSE), while 1,084 were losing ground. The Nifty Bank index reported a decline, settling at 51,440.40 after losing 90.75 points or 0.18%.
The Nifty Midcap 100 index also slipped by 132.85 points or 0.24%, reaching 56,216.90. On a brighter note, the Nifty Smallcap 100 index experienced a slight uptick, gaining 43.20 points or 0.24% to reach 18,292.35.
Asian markets showed mixed signals, with stock exchanges in Bangkok, Shanghai, Hong Kong, Jakarta, and Seoul trading in the green, while Tokyo’s market lagged. In contrast, the US stock markets closed lower in their previous trading session.
FII Selling & Performance Revisions Weigh On Market Outlook
Market analysts pointed to ongoing foreign institutional investor (FII) selling as a significant factor affecting market dynamics. With FII outflows reaching Rs 98,085 crore this month through October 24, experts noted that traditional buy-on-dips strategies have become less effective.
They also highlighted a consensus among analysts regarding downward revisions in earnings estimates for FY25, coupled with disappointing second-quarter performance, contributing to a somewhat bearish outlook.
Despite these challenges, experts acknowledged that domestic institutional investors (DIIs) have been stepping in to absorb the selling pressure from FIIs.
Experts noted, “The positive factor is the sustained flows into mutual funds that is helping DIIs absorb the massive FII selling.”
Earlier on 24 October, FIIs sold equities worth Rs 5,062 crore, while DIIs made net purchases totaling Rs 3,620 crore, reflecting a continuing trend of divergence in market participation.
As the trading day unfolds, investors will be keenly observing how these factors influence market performance moving forward.
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