Indian markets open weak, US job data hit hopes of Nifty making all-time high: Experts

MUMBAI: The domestic equity markets opened on a weaker note on Friday, tracking broad-based selling across global indices. The Nifty 50 opened at 26,109.55, registering a decline of -82.60 points (-0.32 per cent), while the BSE Sensex began the session at 85,347.40, down -285.28 points (-0.33 per cent).

Market sentiment was weighed down by persistent global weakness, as major international indices posted sharp corrections from their recent lifetime highs. The impact of global risk-off cues was visible across Asian markets as well, although experts noted that India may not fall as sharply.

Ajay Bagga, banking and market expert, said that India had not fully participated in the global “Nvidia Risk On” rally, which could help cushion the downside today.

“India did not party too strongly on the Nvidia Risk On celebrations, so we should not fall as strongly as Asia today. But the impact of a high Fed rate comes into India, as to protect the Rupee, the RBI will now not cut on Dec 5th, despite having the monetary space to do so with a very low CPI and WPI print,” Bagga said.

He also highlighted that foreign portfolio investors continue to maintain a bearish stance. “FPIs remain at 88 per cent net short positioning, so sellers will not press home the Nvidia Curse into the Indian markets to that extent”, he added.

Bagga noted that expectations of Nifty reclaiming its all-time highs have been hit by the latest US data. “We had fond hopes of Nifty reclaiming its all-time highs either today or next week, those hopes are dashed on the US Sep Jobs report rocks today. Hopefully the domestic funds will ride to the rescue again. Expect cuts in IT stocks in resonance with the US and Asian AI plays”, he said. He also pointed out that cryptocurrencies witnessed sharp declines, with Bitcoin falling to its lowest level since April.

Despite the cautious sentiment, the Nifty 50 continues to inch closer to its lifetime high, supported by steady domestic flows. Key support zones remain placed at 26,130, 26,070, and a stronger demand region between 26,000-25,900. A breakout above the long-awaited all-time high of 26,277 could pave the way toward 26,350-26,500, market observers said.

In the broad market indices on NSE Nifty 100 down by 0.21 per cent, Nifty Midcap 100 lost 0.32 per cent, Nifty Small cap 100 also lost 0.37 per cent during the opening session. In the sectoral indices on NSE, except Nifty Auto, all other sectors opened in pressure with Nifty Private Bank down by 0.22 per cent, Nifty IT in red at 0.12 per cent, Nifty Metal register highest decline in opening as it lost 0.8 per cent soon after opening.

Ponmudi R, CEO, Enrich Money, said “While global markets are correcting from lifetime highs, India has not yet hit fresh all-time highs on Nifty or Sensex. This has kept investor confidence intact. In the same period when global indices declined, the Nifty 50 gained 914 points, up 3.36 per cent, supported by strong domestic flows, steady retail participation, and DII buying. Only Bank Nifty and the mid-cap index have touched new highs earlier, which is why Indian markets are still attracting dip-buying and remain broadly resilient despite global volatility”.

Global markets have been facing sharp selling pressure this month after touching or crossing lifetime highs, triggering broad profit-booking across the US, Japan, Korea, and Hong Kong. (ANI)