Indian equity markets are expected to open on a cautious note on Friday, February 13, with sentiment shaped largely by weak global cues and lingering concerns over valuations after recent volatility.
Early indications point to a muted to slightly negative start as investors digest overnight moves in global equities, particularly continued pressure on technology stocks, and remain watchful ahead of key macro signals from the US.
The tone in domestic markets remains fragile after benchmarks ended the previous session lower, weighed down by heavy selling in IT stocks and selective profit booking in index heavyweights. The recent rally has shown signs of fatigue, prompting investors to turn more selective, even as underlying domestic fundamentals remain supportive. Market participants are increasingly wary of sharp moves in either direction and appear inclined to reduce risk exposure ahead of fresh triggers.
Global cues are likely to dominate Friday’s trade. Weakness across major overseas markets, driven by concerns over interest rate trajectories and soft performance in global technology stocks, could spill over into Indian equities at the open. Any further downside in US tech names may continue to exert pressure on domestic IT stocks, which have been among the laggards in recent sessions. At the same time, commodity prices and movements in the dollar will be tracked closely for cues on inflation and capital flows.
“Markets are likely to open on a mildly negative note, tracking continued weakness in global equities after a sharp sell-off in technology stocks,” said R Ponmudi, a senior market analyst and CEO at online trading and wealth tech firm Enrich Money.
He added that growing concerns over AI-led disruptionand fading optimism around near-term global rate cuts — following strong US jobs data are likely to weigh on sentiments.
On the domestic front, the focus is expected to remain on stock-specific action as the earnings season draws to a close. While results-driven volatility has moderated, selective buying interest may emerge in sectors perceived as relatively defensive or insulated from global uncertainty, including banking, financials and certain consumption-oriented stocks. Export-linked sectors, particularly IT, may continue to face headwinds amid global demand concerns and currency movements.
“Nearly Rs 2.80 lakh crore in market capitalisation was erased in the previous session, signalling that traders preferred to lock in gains rather than chase valuations at elevated levels,” said Ponmudi.
Technically, the market appears to be in a consolidation phase. The Nifty is expected to find support at lower levels if selling pressure intensifies, while any recovery is likely to face resistance as investors use rallies to trim positions. Sustained buying interest will be required for a decisive directional move, failing which the market could remain range-bound through the session.
