Indian stock markets continued the downward trend on Friday amid weak global cues and a wait-and-watch mode before the Fed rate cut.
The Nifty 50 index opened at 24,498.35 points with a decline of 50.35 points or 0.21 per cent, while the BSE Sensex index opened at 81,212.45 points with a dip of 77.51 points or 0.10 per cent.
Experts noted that Indian markets continue to consolidate amid weak global cues and ahead of the Fed rate announcements. However, Indian markets may witness a rally during the pre-budget phase in railway, defense, and other stocks.
Ajay Bagga, Banking and Market Expert stated “Weak global cues are an overhang on the Indian markets today. There is little faith in the frequent Chinese stimulus announcements which have been underwhelming in terms of real impact. Indian markets are continuing their range bound, consolidating mode. We expect that to continue till the Fed rate cut event is out of the way. Post that we could see a pre-Budget rally set in Railways, Defence, Industrials, IT and Financials are the strong spots going into the year end”.
In the sectoral indices on NSE, all major sectors declined, while the Nifty Oil and Gas and Nifty Realty gained during the opening session.
In the Nifty 50 list, 14 stocks gained while 36 stocks declined. Eicher Motors, BPCL, Adani Enterprises, Nestle India, and ICICI Bank emerged as top gainers at the opening, while Tata Steel, JSW Steel, and Hindalco opened as the top losers in Nifty 50.
“The index is now sitting inside the 50- and the 100-day averages, with the former expected to offer support around 24430, a level that sits inside critical support that spans the 24360 and 24445 zone.
Immediate support lies at 24500, which bulls will need to protect at least on a closing basis” said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets, Japan’s Nikkei 225 index declined by 1.24 percent, Hong Kong’s Hang Seng index was down by 1.46 percent, Taiwan’s Weighted Index was up marginally by 0.18 percent, and South Korea’s market remained in the green, showing mixed trends in
Asian markets.
