CHENNAI: Indian equity benchmarks opened in negative territory on Friday, with early trade marked by weakness in IT stocks and cautious global sentiment. The Nifty 50 slipped around 0.29 percent, while the Sensex fell nearly 0.30 percent in the first hour of trade as investors reacted to subdued cues from overseas markets and awaited political developments at home.
The IT index was the biggest drag, declining about 1.3 percent amid concerns over global demand and the impact of recent commentary from US Federal Reserve officials, which tempered hopes of near-term rate cuts. The shift in global interest-rate expectations prompted a broader risk-off mood across Asian markets, which spilled over into domestic equities.
Mid-cap and small-cap segments showed a comparatively steadier tone, with small-caps even registering marginal gains, indicating selective buying interest despite weaker headline indices. Market breadth, however, turned slightly negative as the session progressed.
Investors also closely tracked early trends from the Bihar election results, which became a key driver of sentiment in the morning trade. With initial trends indicating that the ruling NDA alliance was in the lead, markets found a measure of support from expectations of policy continuity. However, the absence of a decisive early mandate kept traders cautious, limiting aggressive positioning. As a result, sectors that typically react to political signals—such as infrastructure, public-sector enterprises, and consumption-linked counters—saw restrained movement as investors waited for clearer confirmation of the final outcome.
Offshore futures suggested a lower start for domestic indices, aligning with the cautious tone seen across global markets. Technical indicators also pointed to hesitation: the Nifty formed a doji candle in the previous session, signalling indecision near key resistance levels.
Analysts noted immediate support for the Nifty around 25,700 and resistance near 26,050. A sustained move above the upper band could encourage fresh buying, while a break below support may invite further selling pressure.
Overall, the morning session reflected a restrained start to the day’s trade, shaped by global macro cues, political developments, and sector-specific pressures. Markets are expected to remain range-bound until clearer signals emerge from global rate commentary and domestic political outcomes.