CHENNAI: Indian equity benchmarks were trading flat to slightly lower by noon on Friday, pausing after a strong rally earlier in the week as investors booked profits amid lingering uncertainty over a potential US–India trade agreement.
At 12:00 noon IST, the BSE Sensex hovered near 84,400 after slipping over 100 points from the day’s high, while the Nifty 50 was trading just below 25,900. The indices had opened on a positive note but soon lost momentum as selling pressure emerged in select heavyweight stocks.
Market sentiment turned cautious as optimism over the long-awaited US–India trade deal waned in the absence of concrete progress. Reports suggesting renewed doubts over the agreement weighed on investor confidence.
Sectoral trends were mixed. Metals and energy shares offered some support, helped by firm global commodity cues, while FMCG, healthcare and private banking counters saw mild profit-taking. Broader markets mirrored the cautious mood, with both the Nifty Midcap and Smallcap indices trading marginally lower.
Foreign institutional investors were seen trimming exposure after recent inflows, while domestic funds continued selective buying in defensive sectors. Analysts said the current movement reflects a consolidation phase, with the market digesting recent gains and awaiting fresh triggers.
Globally, sentiment remained guarded amid concerns over energy prices and geopolitical risks. Fluctuations in crude oil prices and a stronger dollar also influenced trading patterns, adding to the choppiness in domestic equities.
Market analysts expect the Nifty to find support near the 25,800 level and face resistance around 26,000. Unless there is a clear signal on the trade deal or strong corporate earnings, indices are likely to trade range-bound through the rest of the session.
