Key Highlights
- Nifty50 opens nearly unchanged at 24,835; Sensex dips 49 points to 81,583, reflecting cautious investor sentiment.
- Indian stock market opens flat; Nifty50 marginally up, Sensex slightly down amid subdued global cues.
The Nifty50 and BSE Sensex, India's equity benchmark indices, opened flat on Friday. While the Nifty50 was near 24,850, the BSE Sensex fell around 100 points in the opening trade. The Nifty50 rose by 0.0056% which is one point, to 24,835.00. The Sensex started the day by dropping 49 points (0.060%) to 81,583.82.
Analysts are saying the market will be fairly steady during the week, since Friday’s Q4 results, economic news and whatever happens on US tariffs could cause movement in sectors and stock prices.
Even without positive news, according to Geojit Investments Leader VK Vijayakumar, the stability of the markets is thanks to strong inflows from FII and DII groups of investors. It is expected that the current wave of mergers and acquisitions will take place before long.
It’s important for investors to note two key points affecting markets: First, India is seeing stronger and improving macroeconomic numbers. Also, companies’ profits are not keeping up with the positive changes in the economy.
This is the fundamental reason for the market's range-bound movement. The Nifty earnings growth in FY25 was a pedestrian 5.5%, with a projection of around 10% for FY26.
Also Read: SBI Mutual Fund Introduces Nifty200 Quality 30 Index Fund
"The valuation multiple of 21 for 10% earnings growth is clearly on the high side. Until leading indicators point to an improvement in earnings growth, this will restrict the Nifty's upside. At the same time, the foundation for a strong economy and earnings recovery in the medium term is laid by continuously improving macroeconomic indicators like resilient GDP growth, declining inflation and interest rates, and declining fiscal and current account deficits. "Investors should stay invested and buy quality stocks on dips."
US markets closed higher on Thursday, with Nvidia shares rising following quarterly results. Traders also responded to a late-afternoon judicial decision that reinstated President Donald Trump's comprehensive tariffs.
Asian equities were set to fall as market participants' optimism dwindled amid legal ambiguities surrounding President Donald Trump's trade policies and US economic slowdown.
Foreign portfolio investors bought shares worth Rs 884 crore net on Thursday. Additionally, domestic institutional investors bought shares worth Rs 4,286 crore, making them net buyers.
From Rs 78,987 crore on Wednesday to Rs 77,963 crore on Thursday, FIIs' net short position in futures decreased.
