Indian Stock Markets Face Selling Pressure Amid Global Decline

Indian stock markets opened lower on Friday due to global market declines, with Nifty 50 and BSE Sensex indices dropping significantly. Leading banking and market experts attribute the plunge to global factors, specifically mentioning US economic data and a potential hawkish move by the Bank of Japan as concerns.

Indian stock markets faced significant selling pressure during the opening session on Friday, mirroring the downturn in global markets. The Nifty 50 index opened with a sharp decline of 221.90 points (0.89 percent) at 24,789 points, while the BSE Sensex index tumbled by 708.55 points (0.87 percent) to 81,158.99 points during early trading.

"Indian markets had just crossed the 25,000 mark on the Nifty. The global pressure will have a bearing on the Indian markets as well. However, with ample liquidity with domestic investors, we expect every dip to be bought into. The global risk remains a sharp US fall and a disorderly unwinding of the Yen Carry trade. A lot will depend on domestic investors absorbing selling due to global factors," commented Ajay Bagga, banking and market expert. Top losers in the Nifty 50 included TATA Steel, JSW Steel, TECH Mahindra, BPCL, and Power Grid. Conversely, Apollo Hospital, Hindustan UNILVR, DR Reddy, NESTLE India, and TATA Consumers saw marginal gains of less than 1 percent.

Broader market indices on the National Stock Exchange, including Nifty VIX, Nifty Next 50, Nifty Small Cap, and Nifty Midcap, experienced a fall. Sectoral indices, with the exception of Nifty FMCG, opened with declines.

Titan Company, Hindustan Zinc, Britannia Industries, GlaxoSmithKline Pharmaceuticals, LIC Housing Finance, Delhivery, and Edelweiss Financial Services are scheduled to announce their quarterly results later on Friday. Globally, experts noted that US markets fell following soft economic data, with Asian markets also showing early trade selling pressure.

"Soft US economic data led to a fall in US stock indices and the US 10-year yield falling below 4 percent. The fear in the market is that the US Federal Reserve has kept rates high and monetary policy too restrictive for too long. Asian markets have followed the US lead downwards this morning. Japanese stock markets are selling off more sharply on fears of a hawkish Bank of Japan raising rates further," added Bagga. This follows a milestone achievement on Thursday, with both Nifty and Sensex reaching record highs. The US Federal Reserve's decision to keep interest rates unchanged for the eighth consecutive time provided market support.

The Nifty closed at 25,010.00, up by 59.75 points or 0.24 percent, and Sensex closed at 81,867.73, a rise of 126.38 points or 0.15 percent. Nifty's rise past the 25,000 mark marked a significant milestone, completing a 1,000-point rally in just 24 trading sessions, the third-fastest in history.

(With inputs from agencies.)