Mumbai (Maharashtra) [India], October 16 (ANI): The Indian equity markets opened on a flattish note on Friday amid profit-booking, with the Sensex and Nifty facing renewed selling pressure. Sensex tumbled over 130 points while Nifty was hovering near the 22,960 level.
Sensex opened at 74,341.08 and was trading at around 74,185.59, down 130.02 points or 0.17 per cent against the previous close of 74,315.61 at the time of reporting. At the same time, Nifty opened at 23,065.10 and was trading at around 22,974.05, down 23.30 points or 0.10 per cent, against the previous close of 22,997.35.
Most broad market indices traded in the red; amongst the sectoral indices, Nifty IT emerged as the top gainer, surging over a per cent while most other indices including auto, financial services, bank, realty, oil & gas, consumer durables, healthcare and cement traded in the red during the early morning session.
On BSE, Tech Mahindra, Infosys, TCS, Bharti Airtel, Titan, HDFC Bank, M&M, HCL Tech were the top gainers. Reliance, Bajaj Finserv, LT, Kotak Bank, Hindustan Unilever, SBIN, ICICI Bank, Trent, ITC, Kotak Bank, among others, were top losers. Likewise, on NSE, Tech Mahindra, Infosys, TCS, HCL Tech, Bharti Airtel, Eternal, Titan, among others, were the top gainers. BSE, HDFC Life, Reliance, Bajaj Finserv, Coal India, Trent, Power Grid, among others, were the top laggards.
Notably, the rupee was 35 paise stronger; it opened at 94.71 against the US dollar. In the commodity market, Brent crude was hovering at around USD 105.28 per barrel while crude oil was trading at around USD 97.28 per barrel, at the time of reporting.
Market analyst Vipin Dixena noted, Indian markets are witnessing profit-booking after Thursday’s strong rally, with the Sensex and Nifty facing renewed selling pressure.
He further highlighted, “YES Bank is in focus after the Supreme Court invalidated its Rs 8,415 crore AT-1 bond write-off, raising concerns about the financial implications. Reliance Industries is also in focus amid developments around its Q2 results and the proposed Jio IPO.”
The SC on Thursday upheld the Bombay High Court’s decision quashing Yes Bank’s write-off of Additional Tier 1 (AT1) bonds worth Rs 8,415 crore during the struggling lender’s 2020 restructuring, dealing a blow to the bank in which Japan’s Sumitomo Mitsui Banking (SMBC) is now the largest shareholder.
“The biggest concern remains persistent FII selling. Brent crude is hovering above USD 105 per barrel, keeping pressure on India’s import bill, the rupee and inflation outlook,” Dixena said, adding, “The ongoing Q2 earnings season is also becoming increasingly important. Results from major companies, particularly in banking and IT, could drive sector-specific opportunities even if the broader market remains volatile.”
As per the analyst, technically, the 23,000 mark is the immediate psychological hurdle. “Sustained trading above this level could open the way towards 23,200–23,300, while 22,800–22,700 remains the important support zone. Failure to hold support could bring renewed selling pressure,” he added.
Ajit Mishra, SVP, Research, Religare Broking, noted that while easing crude oil prices and a firmer rupee helped improve sentiment, geopolitical uncertainty and persistent foreign fund outflows continue to pose risks to a sustained recovery.
“Investors are likely to track upcoming corporate earnings and management commentary for further cues on market direction,” he added.
“From a technical perspective, the Nifty has reclaimed its short-term moving average, with the 20-day exponential moving average (20-DEMA) placed around 22,865, and moved above the 23,000 mark. Sustaining above this zone could pave the way for a further upmove towards 23,200, followed by 23,500,” he said.
“On the downside, the 22,500–22,700 zone is likely to provide immediate support in the event of a pullback. Given lingering macroeconomic uncertainties and weak broader-market participation, participants should avoid aggressive positioning and continue to prioritise selective stock-specific opportunities and disciplined risk management,” Mishra added. (ANI)
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