The Indian equity markets began Friday’s session on a negative note. Despite some pockets of strength, broad-based selling dragged the benchmarks down. This marked a cautious end to the trading week.
Both the Sensex and Nifty opened with significant losses. The Sensex dropped 346 points, settling at 81,903 in early trade. The Nifty followed suit, easing by 113 points to 25,383.
This downward move was not isolated to the main indices. The broader market reflected similar weakness. The Nifty Midcap 100 and Nifty Smallcap 100 indices also declined in the morning session.
Sectoral performance painted a clear picture of the sell-off. Nearly every sectoral index traded in the red. Only two sectors managed to buck the negative trend.
The Nifty IT index was a notable exception, rising over 1.5 percent. Consumer durables also saw modest gains. This strength in IT came despite a major selloff in global technology stocks.
On the losing side, FMCG and auto indices were the major laggards. These sectors fell by more than half a percent each. The widespread selling indicated a risk-off mood among investors.
Analysts pointed to several factors behind the cautious sentiment. Fluctuating oil prices, driven by Middle East tensions, remain a key concern. This geopolitical uncertainty continues to weigh on market psychology.
Global tech weakness also poses a headwind. Wall Street saw declines after disappointing earnings from Nvidia. This global pressure may impact Indian IT stocks, which have already corrected significantly this month.
Technical levels provide a roadmap for the Nifty. Immediate resistance is seen between 25,600 and 25,650. Support, on the other hand, lies in the 25,300 to 25,350 range.
For the Bank Nifty, the resistance zone is around 61,400 to 61,500. Its key support area is between 60,800 and 60,900. These levels are closely watched by traders for directional cues.
The Asian market backdrop was mixed during the session. Indices in China and Japan traded with minor losses. Hong Kong’s Hang Seng, however, managed to post gains.
Overnight, US markets ended largely lower. The Nasdaq Composite declined sharply, reflecting the tech-led selloff. The S&P 500 also fell, though the Dow Jones ended nearly flat.
Institutional activity showed a clear divergence. Foreign institutional investors were net sellers, offloading significant value. Domestic institutional investors, conversely, were net buyers, providing some cushion.
The day’s trading highlighted the complex interplay of local and global factors. While domestic IT showed resilience, broader market sentiment remained fragile. Investors are navigating a landscape filled with both opportunity and risk.