Indian equity benchmarks BSE Sensex and NSE Nifty slipped into losses in early trade on Friday after opening marginally higher, signalling that the market is still struggling to stabilise after Thursday’s sharp selloff. Investors are focused on whether key support levels can hold in the sessions ahead.
At 09:28 am, the benchmark indices were down around 0.1 percent, with the Sensex down 100 points at 84,080.2 and the Nifty at 25,842. Market breadth was decisively negative, with 1,887 stocks declining against 964 advances, while 130 shares were unchanged, indicating that selling pressure has extended beyond frontline indices. Midcap and smallcap stocks also traded lower, pointing to a broader pullback in risk appetite.
Markets had opened in the green but quickly gave up gains, reinforcing the cautious tone that has prevailed since the Nifty slipped below the 26,000 mark in the previous session. Analysts see the early weakness as a test of the market’s ability to absorb recent selling pressure. The near-term direction is likely to hinge on whether buyers step in around key technical levels.
Overnight cues were mixed. US markets ended Thursday’s session mixed, with the Dow Jones Industrial Average rising 0.55 percent, the S&P 500 closing flat and the Nasdaq declining 0.44 percent amid weakness in technology stocks. Asian markets were trading mixed in early hours as investors awaited key US payroll data and clarity on trade-related developments. Crude oil prices extended gains on developments in Venezuela and Iran, adding another layer of uncertainty for risk assets.
Sectorally, weakness was visible across most indices. Realty, media, pharma and private banking stocks were among the key laggards, while limited support came from IT, PSU banks and oil and gas stocks. India VIX edged higher to around 10.7, reflecting subdued volatility but lingering nervousness following the recent correction.
On the Nifty, ONGC, Asian Paints, Bharat Electronics and HCL Technologies were among the early gainers on selective buying. On the downside, Adani Enterprises, Adani Ports and Special Economic Zone and ICICI Bank weighed on the index, reflecting pressure in financials and select index heavyweights.
From a market strategy standpoint, technical commentators note that the Nifty’s break below key short-term supports has shifted the near-term bias to cautious. The 25,800-25,700 zone on Nifty is now seen as a crucial support band, where a hold could allow for stabilisation or a technical rebound. On the upside, the 26,000-26,050 zone has turned into immediate resistance, with analysts flagging that only a sustained move back above these levels would ease the current pressure.
Institutional flows continue to be an overhang. Foreign institutional investors sold equities worth about Rs 3,367 crore on January 8, extending their selling streak to a fourth consecutive session, while domestic institutional investors provided support with net purchases of around Rs 3,701 crore.
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