Indian equity benchmarks began Friday’s session on a weak note, mirroring cautious global sentiment. The Nifty50 slipped below the 24,800 mark in early trade, while the Sensex fell over 170 points. At 9:17 AM, the Nifty50 was at 24,775.70, down 61 points or 0.24%, and the BSE Sensex was at 80,808.71, lower by 175 points or 0.22%.
Market experts, however, expect underlying support to continue through the day, citing favorable monetary conditions, strong festive demand, and encouraging monsoon forecasts.
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the central bank’s recent policy measures aimed at boosting credit growth could sustain momentum, particularly in banking stocks. “Stronger banks will benefit from higher credit demand as well as lower deposit insurance costs. Large-cap banks with reasonable valuations look attractive for long-term investors,” he said. Vijayakumar added that while auto shares remain resilient on the back of robust sales and large orders, persistent selling by foreign institutional investors (FIIs) could limit broader market gains.
On Wednesday, FIIs sold shares worth ₹1,605 crore, while domestic institutional investors (DIIs) countered with net purchases of ₹2,916 crore.
Global cues remained broadly supportive. The three major US indices closed at record highs on Thursday, helped by gains in technology stocks. Investors in the US also tracked private employment data during the second day of a partial government shutdown. Asian equities opened slightly higher on Friday, buoyed by optimism around artificial intelligence trends that have fueled recent rallies worldwide.
In commodities, oil prices edged up after four consecutive days of losses, though they remain on track for the steepest weekly decline since late June. Concerns about oversupply and potential OPEC+ output increases kept traders cautious.
Analysts suggest that while short-term volatility may persist due to FII outflows and profit-booking, selective buying in large-cap banks and auto companies could provide a cushion for the market.