Mumbai: Due to FII selling and negative global cues, the Indian benchmark indices opened on Friday with significant losses.
The Nifty was down 162 points, or 0.64 percent, to 25,347 as of 9.25 am, while the Sensex was down 532 points, or 0.64 percent, at 82,778.
With the Nifty Midcap 100 down 0.89 percent and the Nifty Smallcap 100 down 1.26 percent, the broadcap indices beat benchmarks in terms of losses.
Major winners in the Nifty Pack included SBI Life Insurance, Trent, Apollo Hospitals, and ICICI Bank; losers included TCS, Titan Company, Tata Consumer, and Shriram Finance.
With a 1.38% decline, Nifty Consumer Durables was the largest sector loser. IT, auto, and real estate all had declines of more than 1%, and all sectoral indices were trading down.
The DII and investors buying in the market are being overtaken by massive shorting by FIIs, according to analysts. They stated that the FII’s approach of persistent selling in India and transferring funds to less expensive markets has been successful, giving them the confidence to stick with it and keep shorting the market.
“Short covering can lead to trend reversal, but there are no immediate triggers for that in sight. FII selling has reduced the prices of fairly valued large caps, particularly in banking and pharmaceuticals, where growth prospects continue to be bright,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
However, India Inc.’s second-quarter FY26 earnings demonstrated a better-than-expected performance, with a 14% year-over-year increase in earnings by companies in important industries, particularly midcaps.
With the Nasdaq falling 1.9%, the S&P 500 falling 1.12%, and the Dow losing 0.84%, the US markets concluded the day in the red zone.
Due to worries about the high valuations of artificial intelligence firms, Asian markets also saw losses, following the decline in US stocks.
During the morning session, the majority of Asian markets were trading in the red. Japan’s Nikkei fell 2.16 percent, Hong Kong’s Hang Seng Index fell 0.98 percent, and China’s Shanghai and Shenzhen indices fell 0.17 and 0.17 percent, respectively. Kospi fell 2.57% in South Korea.
On Thursday, domestic institutional investors (DIIs) were net buyers of stocks valued at Rs 5,284 crore, while foreign institutional investors (FIIs) sold stocks valued at Rs 3,263 crore.
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Photo: Nitin Lawate/IANS
–IANS
