The Indian stock markets continue to remain under pressure as both indices are in a weak trend, with both opening flat on Friday.
The Nifty 50 index opened at 24,418.05 points with a marginal gain of 18 points or 0.08 per cent, while the BSE Sensex gained 0.15 per cent or 122 points to open at 80,187.34.
At 10:18 am, Sensex was trading 376.16 points lower at 79,689.00, whereas Nifty was trading 146.05 points down at 24,253.35.
Experts stated that the ‘Buy on Dips’ strategy is not working as FIIs are continuously selling in the markets. Weak estimates from the quarter 2 results have also fueled the selling in the markets.
“With the massive, sustained and unprecedented selling by the FIIs, which has touched Rs 98085 crores this month up to 24th, the buy on dips strategy is not working. More important, the consensus downward revision in FY25 earnings estimate and the weak Q2 numbers have soured the sentiments to slightly bearish mode. The positive factor is the sustained flows into mutual funds that is helping DIIs absorb the massive FII selling” said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
He further added “this can provide resilience to the otherwise weak market where even after the 7 per cent correction there is no valuation comfort, except in pockets like largecap financials. Growth stocks are likely to be more resilient in this market where value is hard to come by.”
In the sectoral indices on the National Stock Exchange, Nifty FMCG emerged as the top gainer in the opening session with a surge of around 1 per cent. Nifty BANK and Nifty continue the downward movement. Nifty IT is up with a marginal gain of 0.09 per cent.
In the Nifty 50 list, the top gainers at the opening include Axis Bank, ITC, HCL Tech, ICICI Bank, and Sun Pharma, while the top losers include IndusInd Bank, NTPC, L&T, and Shriram Finance.
In the quarterly results announcements today, Coal India, Bharat Electronics, JSW Steel, DLF, and BPCL are some of the major companies set to announce their quarterly performance today.
Other Asian markets showed mixed performance today, with Japan’s Nikkei 225 index down by around 1 per cent, while Hong Kong’s Hang Seng gained more than 1 per cent. South Korea’s KOSPI and Taiwan’s Weighted index are also up by 0.5 per cent, while Indonesia’s Jakarta Composite surged marginally by 0.2 per cent at the time of filing this report. (ANI)
