CHENNAI: Indian equity benchmarks started Friday’s session on a weaker note, tracking subdued global cues and continued foreign investor selling. At around 11:00 a.m, the Sensex was down about 116 points at 80,867, while the Nifty 50 slipped 0.16% to trade near 24,796.
Financial stocks led the decline, falling around 0.4%, while consumer goods and auto names also came under pressure. However, broader markets showed relative resilience, with mid- and small-cap indices managing modest gains of 0.2–0.4%.
The key market drivers on Friday early trade were:
Foreign outflows: Overseas investors remained net sellers, with September outflows crossing $2.7 billion. Persistent withdrawals continue to weigh on large-cap performance and have added pressure on the rupee, which is trending weaker against the dollar.
RBI policy: The Reserve Bank of India recently held the repo rate steady at 5.5% while announcing measures to ease credit flows. These steps initially supported market sentiment, but external headwinds have limited follow-through buying.
Technical trends: Analysts see Nifty support in the 24,600–24,700 range, with resistance close to 25,000. Unless the index breaks above this level decisively, trade is expected to remain range-bound.
On the stock and sector front, Hero MotoCorp shares gained after reporting an 8 percent year-on-year rise in September sales. While, HUDCO released its Q2 business update, drawing investor focus to infrastructure and realty stocks.
Attention is also turning to a strong IPO pipeline in October, with several large listings expected to hit the market.
According to stock analysts, the market sentiment remains cautious given global uncertainties, persistent FII selling, and currency weakness. While India’s domestic demand and infrastructure spending continue to provide a buffer, sustained momentum will likely depend on stabilizing capital flows and global policy signals.
For the Nifty, the 24,600–24,700 range is seen as a key support zone, while the 24,950–25,000 band is viewed as immediate resistance. Analysts expect near-term consolidation with stock-specific action in autos, consumer goods, and infrastructure, while financials may stay under pressure until foreign flows turn supportive.