Markets Open In Red As Foreign Investors Offload Equities; DIIs Buy

The Indian stock market opened in the red on Friday, tracking negative global cues amid diminishing hopes of a US Federal Reserve rate cut and ongoing foreign institutional investor (FII) selling.

The Sensex fell 292 points, or 0.35 per cent, to 84,185, while the Nifty declined 85 points, or 0.33 per cent, to 25,794 at 9:25 AM.

Despite the benchmarks’ weakness, broader indices showed resilience. The Nifty Midcap 100 advanced 0.27 per cent, while the Nifty Smallcap 100 rose 0.15 per cent.

Sectoral indices on the NSE traded mixed, with FMCG falling 0.28 per cent, IT declining 0.94 per cent, Auto down 0.35 per cent, and Metal slipping 0.54 per cent.

The Nifty Media index stood out as a gainer, rising 0.72 per cent.

Analysts’ Insights

Market analysts suggested that the initial reaction to the Bihar election results is likely to be temporary.

They noted that the medium- to long-term market trajectory would depend on fundamentals, particularly corporate earnings growth.

Prospects for robust GDP growth and improving earnings offer optimism for investors, they added.

Analysts identified immediate resistance for the Nifty at 25,950, followed by 26,000, and support levels at 25,700 and 25,750 zones.

Asia-Pacific markets opened lower, mirroring losses on Wall Street.

Technology stocks continued their decline in the US, with the Nasdaq falling 2.29 per cent, the S&P 500 dropping 1.66 per cent, and the Dow slipping 1.65 per cent overnight.

In Asia, China’s Shanghai index fell 1 per cent and Shenzhen dipped 1.09 per cent. Japan’s Nikkei declined 1.65 per cent, Hong Kong’s Hang Seng slipped 1 per cent, and South Korea’s Kospi lost 2 per cent.

FII and DII Activity

On Thursday, foreign institutional investors sold equities worth Rs 384 crore, while domestic institutional investors were net buyers to the tune of Rs 3,092 crore.

The divergence between FII selling and DII buying reflects cautious optimism among domestic investors amid global uncertainties.

While Bihar election results may dominate market sentiment today, analysts emphasised that the medium- to long-term direction will depend on economic fundamentals, corporate earnings, and global macroeconomic trends.

With India’s GDP growth showing resilience, investors can expect opportunities to emerge despite near-term volatility in the indices.

This mixed environment highlights that while short-term corrections may occur, structural growth and robust fundamentals continue to support the market’s underlying momentum.

Also Read: Sensex Down 68 Points, Nifty Dips 15 Points On Thursday Morning