Indian stock markets kicked off Friday with small dips, as foreign investors kept selling despite upbeat signals from global markets and the Reserve Bank of India’s recent dovish stance on interest rates.
By 9:20 a.m., the Sensex slipped 191 points, or 0.24%, to stand at 80,792. The Nifty also fell 56 points, down 0.23% at 24,780. Meanwhile, midcap and smallcap stocks showed some resilience, with the Nifty Midcap 100 up 0.22% and the Nifty Smallcap 100 gaining 0.14%.
On the Nifty, top performers included Tata Steel, Axis Bank, Kotak Mahindra Bank, Tata Motors, and Asian Paints. But stocks like Max Healthcare, Bajaj Finance, Shriram Finance, and ICICI Bank dragged the index lower.
Sector-wise, the Nifty Metal index led the gains, climbing 0.89%. Nifty PSU Bank rose 0.59%, and Nifty Pharma added 0.30%. On the downside, Nifty Media dropped 0.65%, while Nifty FMCG fell 0.45%.
From a technical standpoint, analysts point out that if the Nifty holds above 24,900, it could spark a rally toward 25,000 and even 25,150. Key support levels sit at 24,750 and 24,600, which might offer good buying opportunities for bullish traders.
Overnight, U.S. markets closed higher, with the Nasdaq up 0.39%, the S&P 500 edging up 0.06%, and the Dow Jones gaining 0.17%. In Asia-Pacific, most markets followed suit on Friday, brushing off concerns over the U.S. government shutdown. Investors are watching closely to gauge how long the shutdown lasts and its potential hit on the economy.
China’s Shanghai Composite rose 0.52%, and the Shenzhen index climbed 0.35%. Japan’s Nikkei surged 1.44%, though Hong Kong’s Hang Seng dipped 0.84%. South Korea’s Kospi jumped 2.70%.
Experts say the RBI’s push to spur credit growth could keep the positive vibe going, especially for the Bank Nifty index. But ongoing FII selling might put a damper on that momentum, as foreign investors seize chances to offload shares aggressively.
On the flip side, strong buying from domestic institutional investors (DIIs) could prop up the market, particularly in large-cap auto stocks with solid fundamentals.
In Wednesday’s session, FIIs offloaded equities worth Rs 1,605 crore, while DIIs snapped up Rs 2,916 crore worth, providing a buffer against the selling pressure.
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