Sensex Down 191 Points; Nifty Edges Lower On FII Pressure

On Friday, the Sensex opened 191 points lower, down 0.24 per cent at 80,792, while the Nifty 50 declined 56 points, or 0.23 per cent, to 24,780 at 9:20 AM.

Despite the early dip, broad-cap indices saw modest gains, with the Nifty Midcap 100 up 0.22 per cent and the Nifty Smallcap 100 rising 0.14 per cent.

Among the top gainers on the Nifty 50, stocks such as Tata Steel, Axis Bank, Kotak Mahindra Bank, Tata Motors, and Asian Paints performed well, while Max Healthcare, Bajaj Finance, Shriram Finance, and ICICI Bank were among the notable losers.

Sectoral indices showed mixed trends. Nifty Metal emerged as the top gainer, advancing 0.89 per cent, followed by Nifty PSU Bank (up 0.59 per cent) and Nifty Pharma (up 0.30 per cent).

On the other hand, Nifty Media and Nifty FMCG were the largest losers, down 0.65 per cent and 0.45 per cent, respectively.

Analysts noted that a sustained move above 24,900 on the Nifty could pave the way for a rally towards 25,000 and 25,150.

Immediate support levels are placed at 24,750 and 24,600, which may provide potential entry points for long trades.

Global markets provided mixed signals. The US markets closed higher on Thursday, with Nasdaq up 0.39 per cent, S&P 500 up 0.06 per cent, and Dow Jones rising 0.17 per cent.

Asia-Pacific markets mostly followed suit, as investors remained unfazed by the US government shutdown.

Key performances included:

• Shanghai Composite: +0.52%
• Shenzhen: +0.35%
• Nikkei 225: +1.44%
• Hong Kong Hang Seng: -0.84%
• KOSPI (South Korea): +2.70%

While the RBI’s measures to boost credit growth have supported market momentum, sustained FII selling continues to weigh on gains.

Analysts highlighted that FIIs may accelerate selling, while robust domestic institutional investor (DII) buying could provide a counterbalance, particularly in large-cap auto stocks with strong fundamentals.

In the previous trading session on Wednesday, FIIs sold equities worth Rs 1,605 crore, while DIIs were net buyers of Rs 2,916 crore, reflecting ongoing domestic support amid foreign selling pressure.

Analysts remain cautious, noting that while global cues and RBI initiatives may provide intermittent support, sustained FII selling could cap the upside in the near term.

Investors are advised to watch key support levels for potential buying opportunities, particularly in fundamentally strong sectors.

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