Indian stock markets opened on a cautious note Friday, reflecting global uncertainty following a second consecutive rate cut by the US Federal Reserve.
Key sectors, including auto, PSU banks, media, and oil and gas, saw significant selling pressure, impacting both the Sensex and Nifty indices.
The BSE Sensex dipped slightly by 19.40 points to 79,522.39, a decline of 0.02%, while the NSE slipped by 19.50 points, or 0.08%, to 24,179.85, setting a mixed tone for the trading day.
Market sentiment remained subdued, with 1,463 stocks trading lower and only 746 stocks in the green on the National Stock Exchange.
Sector-specific indices showed a mixed bag of performance. The Nifty Bank index declined by 0.04%, landing at 51,897.05, while the Nifty Midcap 100 eked out a slight gain, adding 7.35 points to 57,116.50. Conversely, the Nifty Smallcap 100 slipped by 0.08% to 18,749.75.
Among top stocks, Tata Motors, Reliance, ICICI Bank, Asian Paints, Maruti, and NTPC registered losses, weighing down the Sensex. On the upside, Infosys, Tech Mahindra, HDFC Bank, HCL Tech, Titan, and Kotak Mahindra Bank emerged as the day’s top gainers, helping to offset some of the broader market declines.
According to market analysts, Nifty retraced its recent gains, showing signs of resistance near the 24,200 mark.
Analysts stated, “The market sentiment remains mixed as investors are still assessing the impact of the Fed’s recent rate cuts. Persistent selling by foreign institutional investors (FIIs) has added pressure on the markets.”
Foreign institutional investors sold off Rs 4,888 crore worth of Indian equities on 7 November, while domestic institutional investors provided some support by purchasing equities worth Rs 1,786 crore.
In Asian markets, trading presented a varied picture. While Shanghai and Hong Kong showed some weakness, markets in Tokyo, Seoul, Jakarta, and Bangkok were trading higher. In the US, stock markets closed in the red, reflecting a cautious approach after the Fed’s rate decision.
Akshay Chinchalkar, Head of Research at Axis Securities, noted that Nifty demonstrated a bearish engulfing pattern on Thursday, dropping by 1.2%.
“Breadth was negatively skewed with nine stocks falling for every that rose. The price action over the last couple of weeks has clearly shown the significance of near-term technical resistance in the 24,541-24,560 area,” he observed.
As options data indicates a predominantly bearish outlook, experts suggest that Nifty may continue to fluctuate within a broad range.
“Unless Nifty moves above the resistance zone with support holding at 23,800 on the downside, this choppy phase is likely to persist,” added Chinchalkar.
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