CHENNAI: Indian equity benchmarks ended marginally lower on Friday as investors booked profits after recent gains, while weak global cues and selective selling in heavyweight sectors added to the cautious tone. Despite a sharp early slide, markets managed to recover most losses toward the close, indicating underlying resilience.
The BSE Sensex closed at 83,216.28, down 0.11 percent, while the NSE Nifty 50 slipped 0.07 percent to finish at 25,492.30. The broader indices showed a mixed trend — the Nifty Midcap index gained about 0.6 percent, whereas the Smallcap index declined 0.16 percent.
During intraday trade, the Sensex had dropped over 600 points amid broad profit-taking, but late buying in select metal and banking stocks helped pare losses. The Indian rupee ended largely flat at around ₹88.66 against the US dollar.
Key drivers
After a strong October rally led by financials and autos, markets entered a consolidation phase this week. Investors turned cautious ahead of fresh domestic and global triggers, leading to intermittent profit-booking.
Foreign portfolio investors, who had poured about ₹14,600 crore into Indian equities in October, turned net sellers in early November, weighing on sentiment. Global markets also remained subdued, keeping risk appetite muted.
Sectoral trends
The metal index was the standout performer, rising about 1.4% on selective buying at lower levels. Financials remained relatively stable, supported by strong earnings and sustained foreign interest.
On the other hand, telecom, IT, and FMCG stocks faced pressure. Bharti Airtel dropped nearly 4% after reports of a stake sale by Singapore Telecom at a discount. Exchange-related counters bucked the trend — BSE shares surged around 9% after regulatory comments allayed concerns over the derivatives segment.
Analysts said the Nifty 50 now faces immediate support near 25,330–25,300, while resistance lies around 25,600–25,700. A breach below 25,300 could trigger further downside toward 25,100 levels, whereas a sustained move above 25,700 might reignite buying momentum.
For the Bank Nifty, key support is placed at 57,300–57,400 and resistance near 58,200. A break below support could lead to a short-term correction.
Weekly overview and outlook
Friday marked the third consecutive day of losses for Indian equities, and both the Sensex and Nifty are headed for a modest weekly decline. Market experts view this as a healthy pause following October’s sharp gains, rather than the start of a deeper correction.
With earnings season still underway, participants are likely to remain selective. Financials, metals, and infrastructure stocks may continue to attract buying interest, while high-valuation pockets could see more profit-taking.
In the coming session next week, investors will mainly keep an eye on the second-quarter earnings of major banks, insurers, and auto firms; foreign institutional investor (FII) flows and rupee movement; global developments, including US inflation data and policy cues; and domestic regulatory updates and policy signals on capital markets.
Overall, markets appear to be entering a consolidation phase after an extended rally. The near-term outlook remains range-bound, with a focus on stock-specific action rather than broad-based moves.