Market Rollercoaster: Sensex and Nifty Tumble Amid Mixed Sentiments

The stock market opened flat Friday, with significant declines in Sensex and Nifty during initial trading. While several Nifty 50 stocks advanced, a mixed sentiment prevailed. Analysts noted market volatility and foreign investments' influence. Investors are urged to monitor domestic and global factors closely.

The stock market started flat on Friday as Sensex and Nifty experienced notable drops in the early trading hours. The benchmark Sensex decreased by 185.20 points, opening the day at 81,426.21, while the Nifty saw a drop of 51.30 points, starting at 24,947.15.

Within the Nifty 50 index, 18 stocks advanced, contrasting with 32 others that declined, indicating mixed market sentiment. Among the top gainers were HCL Technologies, Hindalco, JSW Steel, Wipro, and Bajaj Auto, showcasing resilience amid the downturn. In contrast, CIPLA, Trent, Asian Paints, YCS, and Power Grid led the losses, further impacting the indices.

Soni Patnaik, the Associate Vice President and Derivatives Research Analyst at JM Financial Services, provided insights, stating, "Nifty remains in the 24,800 to 25,100/150 range. The latest weekly expiry indicates the highest open interest at the 25,000 straddle. Foreign Institutional Investors (FIIs) have reduced their long positions to 36%, suggesting an increase in net shorts. Intraday support is pegged at 24,950, with further support around 24,800/24,750. For a short-covering move, Nifty must surpass the 25,300 resistance," Patnaik emphasized.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the current market volatility. He remarked, "The market is anticipated to remain volatile in the near-term, oscillating between FII selling and Domestic Institutional Investor (DII) buying. Attractive valuations in other markets, especially Chinese equities, could drive further FII selling in India due to elevated valuations."

As investors contend with ongoing volatility, market observers will keenly track global developments and domestic indicators to determine the indices' next moves. (ANI)

(With inputs from agencies.)