Indian equity indices opened Friday’s trading session on a flat note. The NSE Nifty 50 opened near 25,100, while the BSE Sensex opened with a negative bias above 82,200.
However, Bank Nifty dropped after Axis Bank reported its quarterly results. The index opened 165 points lower at 56,660. Axis Bank declined 5% to Rs 1,102.60 as soon as markets opened.
In line with the benchmarks, the small and midcap opened on muted lines. The Nifty Midcap was at 59,500.
“In July, so far, India has been underperforming most markets, with a dip of 1.6% in Nifty. A significant contributor to the decline is the selling by FIIs. There is a clear pattern in FII activity this year so far. They were sellers in the first three months. For the next three months, they turned buyers. And in the seventh month, the trends so far indicate further selling unless some positive news reverses the downtrend in the market,” said VK Vijayakumar, Chief Investment Strategist at Geojit Investments.
Along with selling in the cash market, FIIs have been increasing short positions in the derivatives market too, which reflects a bearish outlook. Elevated valuations in India and cheaper valuations in other markets will continue to influence FII activity,” added Vijayakumar.
Nifty might recover from yesterday’s losses as investor sentiment steadies amid easing Trump tariff concerns and positive global cues. Wall Street closed higher with the S&P 500 and Nasdaq nearing record highs, while President Trump’s denial of plans to remove Fed Chair Powell and a rebound in US retail sales further boosted confidence. Fed Governor Waller’s comments favouring a 25 bps rate cut in July also supported the mood, said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.
“Technically, Nifty remains bullish above 25,470, with support at 25,000 and resistance at 26,000,” added Tapse.
Let’s take a look at the key factors to watch out for today’s trading session
Early gainers and laggards
In early trade, among the Nifty 50, top gainers at this hour were Wipro, M&M, Tata Steel, JSW Steel, and ONGC, among other stocks. On the flip side, the key laggards in the Nifty 50 pack included Axis Bank, Kotak Mahindra Bank, SBI Life Insurance, Zomato, and Bharti Airtel.
Major movers on Friday
The stocks that remained under pressure included Axis Bank, HDFC Bank, Bharti Airtel, ICICI Bank, and Kotak Mahindra Bank, which were the major movers in the morning trade.