Mumbai: Indian stock markets continued to remain weak on Friday and opened flat as FIIs and the depreciating Indian rupee exerted pressure.
The Nifty 50 index opened flat at 23,960.70 points with a gain of only 9 points, while the BSE Sensex surged 0.15 percent to open at 79,335.48 points.
Experts stated that the unexpected reduction in the rate cut cycle by the US Fed has jolted markets globally. However, the chances of a year-end rally are still there, but the selling by FPIs is again making it hard for the market to rally.
Ajay Bagga, Banking and Market Expert stated that “Indian markets are trying to shake off the global ‘risk off” sentiment but the FPI selling this week has jolted those efforts so far. We are still optimistic that we could see a short burst going into the year end, but the volatility is making any rally fragile for now”.
He further added that “Chairman Powell is being seen by global markets as the Grinch who stole Christmas this year. As global fund managers proceed on annual holidays, they are suffering the results of over optimistic and over concentrated market views, that were surprised by the US Fed calling time on fast and furious rate cuts”.
In the sectoral indices on Friday, Nifty IT, Nifty Media, and Nifty Pharma recovered, while the other indices continued their downward movement. In the Nifty 50 shares list today, 13 stocks opened with gains, while 37 declined in the opening session.
Markets around the globe are under pressure after an indication from the US Federal Reserve of fewer rate cuts next year, less than the anticipated three or four.
“The support, near 23870, is also the area where the 61.8% Fibonacci retracement of the November to December advance meets a rising 200-day average. Three-day momentum, measured by the RSI, is under 10, and every time it’s gone into single digits, the prevailing downtrend has either stalled or triggered a tactical advance over the next few sessions” said Akshay Chinchalkar, Head of Research, Axis Securities.
In other Asian markets, sentiments were also down on Friday. Japan’s Nikkei 225 index remained flat after its central bank paused and did not hike interest rates, while the markets of Taiwan, South Korea, and Indonesia continued selling and remained in red at the time of filing this report.
