CHENNAI: Indian equities, as expected, started on a cautious note today (Friday, August 22), tracking weak global sentiment ahead of US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole symposium later tonight. Gift Nifty is trading slightly lower, pointing to a subdued opening for the Nifty 50.
US markets closed lower on Thursday, with the S&P 500 down 0.4 percent and the Nasdaq falling 0.7 percent, marking its fifth straight decline. Concerns over interest rate guidance and weak earnings dragged sentiment. Asian markets opened mixed this morning as investors stayed defensive before Powell’s address. Crude oil prices are holding in the mid-$60s, which is supportive for India’s import bill if the trend continues. The rupee is expected to open flat to weaker after slipping in the last session, while bond yields remain firm around 6.52 percent.
On the flows front, Foreign Institutional Investors bought shares worth about ₹1,246 crore on Thursday, while Domestic Institutional Investors purchased around ₹2,546 crore, providing support to the market.
In the opening trade on Friday, the Nifty slipped below the 25,000 mark while the Sensex fell nearly 370 points. The BSE Midcap index dropped 0.2 percent and the Smallcap index fell 0.5 percent. Sectoral indices such as banking, IT, oil and gas, and realty were all down about 0.5 percent. Among individual stocks, Tata Motors, Bharti Airtel, Jio Financial, L&T and Hindalco were the top gainers on the Nifty, while ICICI Bank, SBI Life Insurance, Apollo Hospitals, Bajaj Finance and Bajaj Finserv were among the major losers.
For today, analysts see Nifty’s immediate support around 24,950–25,000, with resistance likely near 25,150–25,200. Financial and real estate stocks may remain volatile until Powell’s policy outlook becomes clearer. Oil marketing companies could benefit from softer crude prices, while export-oriented sectors such as IT and metals may attract interest if the rupee stays under pressure. Strong domestic institutional flows are expected to cushion sharp declines, according to analysts from leading brokerages.
The market expects that Tata Motors, Bharti Airtel, Jio Financial, L&T and Hindalco to remain in focus on the back of recent gains, while ICICI Bank, SBI Life, Apollo Hospitals, Bajaj Finance and Bajaj Finserv will be closely watched for possible rebounds or further weakness,