Indian Equity Markets Extend Losses

Indian equity markets opened lower on Friday, extending losses for the fifth consecutive session. The Sensex and Nifty both opened higher but quickly turned negative as foreign investors continued their selling spree. This downward trend was fueled by the US Federal Reserve’s hawkish stance on interest rate cuts for 2025.

Market Performance

The Sensex opened at 79,335.48 and is currently trading at 78,790.70, down by 427.35 points or 0.54%. The Nifty opened at 23,960.70 and is now at 23,841.95, losing 109.75 points or 0.46%.

Foreign institutional investors (FIIs) have been on a selling spree, offloading equities worth ₹12,230.30 crore in the last four sessions. This selling pressure follows Federal Reserve Chair Jerome Powell’s cautious outlook for 2025 and concerns about India’s growth momentum.

Sectoral Movements

Despite the overall negative sentiment, information technology stocks showed resilience on the back of positive results from Accenture. The global IT major raised its guidance due to strong demand for AI-powered tools, boosting Indian IT stocks. TCS emerged as one of the top gainers, rising 0.93%.

In the morning session, NTPC led the gains on the NSE, followed by Adani Enterprises, TCS, Dr Reddy’s Lab, and Bajaj Auto. On the downside, Axis Bank, L&T, Cipla, ITC, and JSW Steel were among the top losers.

Global Factors

Global factors also influenced market sentiment, with Japan’s core inflation rate hitting a seven-month high and China maintaining its benchmark lending rates to support economic growth.

In the US, the economy grew faster than initially estimated in the third quarter, with GDP expanding at a 3.1% annualized rate. The Dow Jones Industrial Average managed to snap its longest losing streak since 1974.

Market Outlook

Despite the current market weakness, analysts believe that the negative response to the Fed’s commentary will be temporary. Recovery led by largecaps is possible in the near term, with pharmaceuticals remaining resilient. Technical analysts suggest that the market might find support at current levels.

In the bullion market, gold prices dropped to a one-month low following the Fed’s hawkish stance on potential rate cuts in 2025 and 2026.

In conclusion, the Indian equity markets are facing downward pressure, driven by global and domestic factors. Investors are advised to stay cautious and monitor market developments closely.

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