The Indian equity markets opened lower on Friday, with the Sensex and Nifty both trading in the red. While technology stocks, led by TCS, saw gains, the overall market sentiment remained bearish due to various factors.
FII selling continued to be a major concern, with foreign investors offloading equities worth ₹7,170 crore on January 9. This trend has led to a total selling of ₹19,102.80 crore so far in January. However, domestic institutional investors (DIIs) provided some support by purchasing shares worth ₹7,639 crore.
The Indian rupee hit a new low of 85.93 against the dollar in early trading before recovering slightly to 85.89, likely due to RBI intervention. Market concerns were further fueled by subdued Q3 earnings expectations, with top-line growth expected to remain weak for the seventh consecutive quarter.
Despite the bearish sentiment, retail participation in equity markets remained strong, with SIP inflows crossing ₹26,000 crore for the first time in December. Inflows into equity mutual funds increased by 14 per cent last month, reaching ₹41,156 crore.
Technical analysts suggest that the Nifty has immediate support levels at 23,400, 23,300, and 23,200, with resistance levels at 23,600, 23,700, and 23,800. While the market texture is weak, there is a possibility of a pullback rally from current levels.
In global markets, Asian indices showed mixed trends, with the Nikkei trading lower on disappointing earnings results. Hang Seng opened strong but later traded flat. Oil prices rose to above $77 per barrel, while gold traded near $2,670 an ounce as traders awaited key US jobs data.
Overall, while IT stocks rallied, the bearish market sentiment and FII selling persist, posing challenges for the Indian equity markets in the near term. Stay tuned for more updates on market trends and developments.
