Domestic equity benchmarks, the Sensex and Nifty, opened lower on Friday, pausing after a sharp rally over the past two sessions. The early decline mirrored weak cues from Asian and US markets, as investors took an initial breather following optimism around a potential recovery in corporate earnings.
At 9:18 am, the BSE Sensex was down 140.95 points, or 0.17 per cent, at 83,326.71 after declining nearly 261 points in early trade. The NSE Nifty fell 42.20 points, or 0.16 per cent, to 25,543.10, after hitting a day’s low of 25,508.60.
Among Sensex stocks, Eternal led the losers, falling 3.32 per cent to Rs 336.85. Kotak HCL Tech shares gained 1.97 per cent, while Infosys, Adani Ports and Power Grid dropped 1.37 per cent, 0.83 per cent and 0.81 per cent, respectively.
Wall Street closed lower overnight, with all three major US indices ending in the red. The Dow Jones Industrial Average fell 0.65 per cent to 45,952.24, while the S&P 500 declined 0.63 per cent to 6,629.07. The Nasdaq Composite also slipped 0.47 per cent to settle at 22,562.54.
Asian markets were largely in the red in Friday’s trade. At last check, Japan’s Nikkei 225 slipped 0.93 per cent to 47,827.31, while South Korea’s KOSPI eased 0.08 per cent to 3,745.18. Hong Kong’s Hang Seng Index declined 1.37 per cent to 25,534.11.
Reliance Industries is scheduled to announce its quarterly results today, alongside several other key companies including JSW Steel, Dixon Technologies, Polycab India, Havells India, India Cements, L&T Technology Services, and Tata Technologies, which are also set to release their Q2 earnings later in the day.
On Thursday, the Sensex climbed 862.23 points, or 1.04 per cent, to settle at 83,467.66, while the Nifty50 rose 261.75 points, or 1.03 per cent, to end at 25,585.30.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said the market remains resilient and technically strong. “Price action in the leading stocks indicate short covering,” he said.
“Even now there is big shorts in the system and the strength in the market might keep the bears on the back foot, facilitating further short covering. Good results from the banking majors HDFC and ICICI can impart fundamental support to the market, and if RIL, which has been a laggard for some time now, also joins the rally, the market can sustain the momentum for some more time. Muhurat trading and the festival cheer can add to the bullish spirits,” Vijayakumar said.
“However, there are some lingering concerns which should not be lost sight of. China has been imposing restrictions on exports of rare earth metals and magnets in recent days. China’s weaponisation of rare earths, in which it has around 90% global market share, is in response to Trump’s weaponisation of tariffs. Unfortunately, if this lingers, it will hurt all nations, including India,” Vijayakumar added.
Amruta Shinde, Technical and Derivative Analyst at Choice Equity Broking Pvt Ltd, said Indian equity markets are likely to open on a cautious note, with a negative to flat bias, as indicated by the GIFT Nifty. The index was trading around the 25,600 mark in early deals, down 56 points, signaling a soft start to the session.
“This indicates a cautious market sentiment influenced by weak global cues and the absence of strong domestic triggers. Investors are likely to track global market trends, crude oil prices, and institutional flows for further direction,” Shinde said.
“The Nifty opened with a strong gap-up in the previous session and witnessed sustained buying throughout the day, reflecting firm bullish sentiment across sectors. The index managed to hold its gains and ended near the day’s high, closing above the 25,550 mark with a strong bullish candle. This positive momentum suggests continued strength in the near term. On the downside, immediate support is placed at 25,500, followed by 25,400, while on the upside, resistance is seen at 25,700 and 25,800 levels,” Shinde added.