Market Overview
Benchmark stock market indices opened lower on Friday, primarily driven by declines in heavyweight financial stocks. As of 10:00 AM, the S&P BSE Sensex fell 65.89 points to 81,545.52, while the NSE Nifty50 decreased by 1.35 points to 24,997.10.
Key Contributors to Market Movement
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market is expected to remain volatile in the near term, oscillating between Foreign Institutional Investor (FII) selling and Domestic Institutional Investor (DII) buying.
Top Gainers and Losers
On the Nifty50, Eicher Motors led the gainers with a rise of 2.09%, followed by Hindalco Industries at 1.87%. Other gainers included JSW Steel (1.64%), Tata Steel (1.53%), and Tech Mahindra (1.11%). Conversely, Tata Consultancy Services (TCS) faced the steepest drop, falling 1.23%, while Mahindra & Mahindra (M&M) and Cipla also experienced declines of 1.12% and 1.10%, respectively.
FII Selling Pressure
The report indicates that attractive valuations in other markets, particularly Chinese stocks, could prompt further selling by FIIs in India. Concerns about potential earnings downgrades in H2 FY 25 are contributing to a challenging environment for sustaining Indian valuations. However, record monthly SIPs of ₹24,500 in September indicate that DII buying may absorb FII selling.
Sector Performance
The Nifty Smallcap100 index led gains, rising by 0.67%, with the Nifty Midcap100 index also performing well at a gain of 0.27%. The India VIX, often referred to as the fear index, saw a decline of 2.37%.
Sector Highlights
Positive momentum was observed in various sectors, with Nifty Media leading the way at a 1.30% increase. Other sectors performing well included Nifty Metal (up 1.29%), Nifty Healthcare (0.66%), and Nifty Pharma (0.73%). On the downside, the Nifty Financial Services 25/50 index experienced the steepest fall, down 0.37%, along with declines in Nifty Auto (0.31%) and Nifty Realty (0.17%).
As the market navigates these fluctuations, investors are advised to stay informed and consider both domestic and global factors influencing stock performance.
