The stock markets continued their downward trend on Friday, opening flat due to selling by Foreign Portfolio Investors (FPIs) and a weakening Indian rupee. The Nifty 50 index opened with a slight gain of 9 points, at 23,960.70, while the BSE Sensex increased by 0.15%, opening at 79,335.48 points.
Experts suggested that global market sentiment, triggered by the US Federal Reserve’s unexpected slowdown in the rate cut cycle, is putting additional pressure on markets worldwide. While there is still a possibility of a year-end rally, FPI selling is making recovery difficult.
Sector-wise, Nifty IT, Nifty Media, and Nifty Pharma saw recovery, while other sectors continued to decline. Of the Nifty 50 shares, 13 saw gains, but 37 declined during the opening session.
Global markets are also feeling the impact of the US Federal Reserve’s less-than-expected rate cuts, which have added to market uncertainties. Akshay Chinchalkar, Head of Research at Axis Securities, noted that the Nifty is testing support near 23,870, a key level coinciding with the 61.8% Fibonacci retracement of recent gains.
In other Asian markets, the mood remained negative. Japan’s Nikkei 225 index remained flat after the central bank paused its rate hikes, while markets in Taiwan, South Korea, and Indonesia remained in the red at the time of reporting.
