Indian equity benchmarks erased early gains on Friday as persistent foreign institutional investor selling dragged markets lower. The Sensex slipped over 300 points from the day’s high, while the Nifty fell below the 25,300 mark.
Markets Turn Volatile as Sensex, Nifty Erase Early Gains
Mumbai: The domestic stock market on Friday lost its initial gains and traded marginally lower. Investor sentiment remained weak due to continued selling by foreign institutional investors (FIIs). After a positive start, the Sensex slipped nearly 300 points from its day's high, while the Nifty fell below 25,300.
The Sensex opened at 82,335.94 and reached a day's high of 82,516.27 in early trade. However, as profit-booking dominated at higher levels, it slipped into negative territory. At around 11 am, the Sensex was trading at 82,241.92, down 65.45 points, or 0.08 percent.
The Nifty also lost its gains and closed at 25,286.95, down 2.95 points, or 0.01 percent. During the day, the Nifty ranged between 25,347.95 and 25,249.10.
Indian markets rebound after three-day decline; Sensex surges, Nifty trades higher
In the Nifty50, stocks like ETERNAL, InterGlobe Aviation, and SBI Life Insurance Company fell by up to 3 percent. Dr. Reddy's Laboratories and Hindalco Industries rose by up to 3 percent. Market breadth remained negative, with declining stocks outnumbering those advancing.
1) Continued FII Selling:
FIIs sold shares worth ₹2,549.80 crore on Thursday, marking the 13th consecutive session of decline in January. According to V.K. Vijayakumar, Chief Investment Strategist at Geojit Investments, sustained FII buying is difficult without strong corporate earnings growth.
2) Weak Quarterly Results:
Index heavyweights were also under pressure. Weak results from ICICI Bank and HCL Technologies weighed on market sentiment.
3) Rise in crude oil prices:
In the global market, Brent crude rose 0.8 percent to $64.57 per barrel. Higher crude prices raise concerns about inflation and trade deficits for India, putting pressure on the stock market.
Indian Markets Reel as Sensex and Nifty Extend Losses Amid Investor Caution
According to experts, Nifty is showing signs of consolidation. If it fails to hold above 25,300 or suffers a decisive decline below 25,150, the market could see further weakness. However, if it strengthens above the 25,470–25,580 levels, there could be room for further upside.
