Markets opened on a weak note Friday morning, with the Nifty 50 starting at 25,410.20, down from its previous close of 25,423.60. By 9:45 am, it was trading at 25,336.35, reflecting a decline of 87.25 points or 0.34 percent. The Sensex opened at 82,946.04 compared to its previous close of 83,013.96, and was at 82,687.41, lower by 326.55 points or 0.39 percent, despite positive global cues following the Federal Reserve’s rate cut.
Both indices have continued to decline in early trade, attributed to profit-booking amid overbought conditions. Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd., noted, “Gift Nifty is treading water, signalling some fatigue for the benchmark index with mild profit booking likely amidst overbought conditions.” He also indicated that “Nifty bulls are expected to regroup at lower levels following the Fed’s 25 basis points cut.”
Among the top gainers on the Nifty 50, Adani Enterprises led with a rise of 3.58 percent to ₹2,487.90, followed by Adani Ports, up 1.60 percent to ₹1,435.40. Shriram Finance increased by 1.12 percent to ₹633.95, while HDFC Life gained 0.75 percent to ₹790.45. IndusInd Bank rounded out the top gainers with a 0.67 percent increase to ₹740.40.
Conversely, on the losing side, Nestle India dropped 1.11 percent to ₹1,195.70, while Tata Consumer Products fell 1.08 percent to ₹1,117.10. Bajaj Auto was down 0.99 percent to ₹8,985.00, ICICI Bank slipped 0.93 percent to ₹1,408.50, and HCL Technologies decreased by 0.91 percent to ₹1,480.20.
The market weakness comes despite strong global momentum, with all three major U.S. indices hitting fresh record highs following the Federal Reserve’s dovish stance. Ponmudi R, CEO of Enrich Money, noted that “In the U.S., all three equity indices—the Dow Jones, S&P 500, and Nasdaq—scaled fresh lifetime highs, with the Dow crossing 46,100 after the Fed’s dovish stance boosted risk appetite.”
Technical analysts are cautiously optimistic about the medium-term prospects of the market. Ponmudi R explained, “The Nifty 50 is once again testing the downward-sloping trendline near 25,600, the same hurdle it failed to cross at its earlier peak of 25,677.” He indicated that “a decisive breakout above this barrier could quickly unleash momentum towards 25,800–26,000–26,500.”
Hariprasad K, a SEBI-registered Research Analyst and Founder of Livelong Wealth, emphasized the technical momentum, stating, “Momentum indicators remain constructive, with the RSI (14) at 68.37 suggesting strong buying interest, though its proximity to the overbought zone signals the possibility of a short-term pullback if demand moderates.”
Foreign and domestic institutional flows have shown mixed patterns. Reports indicate that Foreign Institutional Investors (FIIs) pulled out ₹1,718 crore from equities this week, while other data showed FII inflows of ₹366 crore on September 18. Domestic Institutional Investors (DIIs) remained robust supporters, contributing ₹3,326 crore on the same day. Ponmudi R remarked, “FIIs pulled out ₹1,718 crore from equities this week, though they remained active in index futures and options—suggesting more hedging than outright bearishness. In contrast, DIIs extended strong support, infusing ₹9,071 crore, which kept the market buoyant.”
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, maintains an optimistic outlook. He stated, “The market is on an uptrend and is well-positioned to set new records soon. Fundamentally, earnings are likely to improve from Q3 onwards.” He also referred to reports of potential U.S.-India trade deals, highlighting “reports of a U.S.-India trade deal without the penal tariff and lower reciprocal tariff from high government officials.”
In the commodities sector, gold and silver prices extended their decline for the third consecutive day. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, explained, “Gold and silver prices are on track for their first weekly loss in a month following a strong rebound in the dollar index.”
Crude oil prices also remained under pressure due to demand concerns and a strengthening dollar. Kalantri noted that “Crude oil extended its fall in a highly volatile session amid a rebound in the dollar index and U.S. demand worries.”
Despite morning weakness, analysts recommend a cautious buy-on-dips approach. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, advised, “Traders are encouraged to continue with a cautious ‘buy-on-dips’ strategy. Booking partial profits on rallies and maintaining tight trailing stop-losses is recommended to manage risk.”
Published on September 19, 2025.
