CHENNAI: Asian equities opened largely on a positive note on Friday, supported by strong global cues following the US Federal Reserve’s recent rate cut. Japan’s Nikkei surged to fresh record highs, reflecting robust investor sentiment. However, the overall trend across Asia remained mixed, with South Korea’s markets flat to slightly lower and other regional indices showing cautious moves. Investors are closely watching the Bank of Japan, which kept rates steady at 0.5 percent but signaled a shift by beginning to unwind its holdings of ETFs and REITs. The policy tone, viewed as mildly hawkish, added some uncertainty to regional trading.
In India, markets started the session on a weaker note after a three-day rally. At 10:30 AM, the Sensex was down over 300 points, while the Nifty slipped below 25,350. Selling pressure was visible in information technology and financial stocks, though select PSU banks managed to show resilience. The rupee also opened softer, trading around 88.22 against the US dollar compared with 88.13 at the previous close.
Adani Group shares were among the bright spots, gaining ground after the Securities and Exchange Board of India dismissed some allegations linked to the Hindenburg Research report. This boosted sentiment in those counters, even as broader market weakness weighed on benchmarks.
The cautious tone in Indian markets reflects profit-taking after recent gains, coupled with global uncertainties. Analysts highlight 25,300 as a key support level for the Nifty, with resistance seen near 25,500–25,670. A breach of support could trigger further downside, while a recovery above resistance may open the door for fresh upside.
Looking ahead, traders are likely to remain watchful of US economic data, global tariff discussions, and movements in crude oil prices. Currency fluctuations will also be closely tracked, as the weakening rupee could influence investor sentiment. Overall, Friday’s session is expected to stay choppy, with selective stock-specific action standing out against a backdrop of cautious trading.