Markets Open Lower As IT, Financials, Pharma Stocks Face Pressure; Nifty Holds Above 25,000

Domestic equity benchmarks began Friday’s session on a weaker note, influenced by mixed global signals and early selling in key sectors like IT, financial services, and pharma.

By 9:29 AM, the Sensex had declined 231.64 points, or 0.28 per cent, to trade at 82,299.10.

The Nifty also slipped, down 49.95 points or 0.20 per cent, at 25,012.15.

Among sectoral indices, Nifty Bank dipped 52.40 points or 0.09 per cent to 55,303.20.

Meanwhile, the Nifty Midcap 100 rose 169.20 points or 0.30 per cent to 56,700.05, while the Nifty Smallcap 100 advanced 78.45 points or 0.46 per cent to 17,318.40.

Analysts noted that the Nifty recently broke out of an inside bar pattern and closed above the critical 25,000 mark, forming a strong bullish candle on the daily chart.

Hardik Matalia of Choice Broking stated, “The index witnessed an intraday recovery of nearly 200 points, reflecting sustained bullish momentum. Immediate support is placed at 24,850–24,700, while resistance is seen at 25,100 and 25,235. A decisive breakout above the 25,235 level could drive the index higher toward the 25,500–25,743 zone.”

He advised traders to follow a ‘buy on dips’ approach while maintaining disciplined risk control, especially in light of current global market uncertainties.

In terms of stock performance within the Sensex, Bharti Airtel, IndusInd Bank, SBI, Infosys, HCL Tech and M&M were among the top losers.

On the other hand, UltraTech Cement, Bajaj Finserv, NTPC, Maruti Suzuki, and Axis Bank emerged as early gainers.

Mixed Cues From Asian & US Markets

Across Asian markets, indices in China, Hong Kong, and Japan were in negative territory, whereas those in Bangkok, Jakarta, and Seoul showed gains.

Overnight in the US, the Dow Jones ended higher at 42,322.75, gaining 271.69 points or 0.65 per cent.

The S&P 500 added 24.35 points or 0.41 per cent to reach 5,916.93, while the Nasdaq dipped 34.49 points or 0.18 per cent to close at 19,112.32.

April’s US economic data presented mixed signals.

The Producer Price Index (PPI) unexpectedly declined by 0.5 per cent, in contrast to forecasts of a 0.2 per cent rise.

Experts said the drop points to easing inflation pressures at the wholesale level.

Devarsh Vakil, Head of Prime Research at HDFC Securities, noted, “Federal Reserve Chair Jerome Powell on Thursday discussed the Fed’s framework review, a twice-a-decade look at the central bank’s monetary-policy strategy. He said the Fed was in the process of making adjustments to account for meaningful changes in the outlook for inflation and interest rates after the 2020 pandemic.”

On the investment side, foreign institutional investors (FIIs) bought equities worth Rs 5,392.94 crore on 15 May, while domestic institutional investors (DIIs) offloaded stocks worth Rs 1,668.47 crore.

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