Mumbai: Indian equity markets extended their losses on Friday morning, with benchmark indices BSE Sensex and Nifty 50 trading in the red amid weak global cues and continued foreign selling.
Benchmarks trade lower in early session
At around 10:15 am, the Sensex was down by 663.20 points, or 0.85 per cent, at 77,000.80. Meanwhile, the Nifty slipped below the key 24,000 mark, trading at 23,993.85, down 184.15 points or 0.76 per cent.
The markets opened on a weak note, extending losses from the previous session, reflecting cautious investor sentiment driven by multiple global and domestic factors.
IT stocks drag markets
The decline was led by heavy selling in IT stocks, with major players like Infosys, Tata Consultancy Services, and HCLTech emerging as top laggards.
The Nifty IT index dropped over 2.5 per cent in early trade, weighing significantly on the broader market. Weak global tech sentiment and concerns over demand outlook are believed to be impacting investor confidence in the sector.
Mixed signals from GIFT Nifty
Despite the weak opening, GIFT Nifty indicated a mildly positive start earlier in the day. It was trading around 24,238, up nearly 80 points or 0.33 per cent, suggesting a potential recovery after two consecutive sessions of decline.
However, elevated crude oil prices, persistent foreign institutional investor (FII) outflows, and weak global market cues continued to weigh on sentiment, limiting any upside.
Previous session saw sharp fall
On Thursday, markets witnessed a significant decline, with the Sensex plunging 852.49 points, or 1.09 per cent, to close at 77,664. The Nifty also dropped 205.05 points, or 0.84 per cent, to settle at 24,173.05.
Market breadth remained negative, indicating broader selling pressure. A total of 2,409 stocks declined, while 1,688 advanced and 155 remained unchanged.
Technical outlook remains cautious
According to market experts, the near-term outlook remains cautious despite signs of a flat-to-positive opening indicated earlier.
Analysts noted that the Nifty formed a “gravestone doji”-like candlestick pattern in the previous session, signalling selling pressure at higher levels. Immediate support is seen in the 23,950–24,000 range, while resistance is placed around 24,350–24,400 levels.
The Relative Strength Index (RSI) stood at 53.24, indicating neutral momentum, while the India VIX rose 1.58 per cent to 18.59, pointing to increased market volatility and uncertainty.
Factors influencing market sentiment
Several factors are currently shaping market direction. Rising crude oil prices are adding to inflationary concerns, while sustained FII outflows are impacting liquidity in the market.
Global uncertainties, particularly geopolitical tensions and economic slowdown fears, are also contributing to cautious investor behaviour.
Conclusion
With benchmark indices trading lower and key sectors under pressure, Indian markets are likely to remain volatile in the near term. Investors are expected to stay cautious amid global headwinds and domestic uncertainties.
Market participants will closely monitor global developments, crude price trends, and institutional flows for further direction in the coming sessions.