Mumbai: Indian equity benchmark indices opened marginally higher on Friday amid weak global cues and elevated crude oil prices. However, information technology (IT) stocks outperformed the broader market, gaining more than 1% in early trade.
The BSE Sensex opened at 74,199.69, up 48.65 points or 0.07%, while the NSE Nifty 50 began trading at 22,964.50, higher by 27.75 points or 0.12%.
Sectoral Pressure
Most sectoral indices traded in negative territory during the opening session. Nifty Consumer Durables and Nifty Cement declined nearly 1% each, while Nifty Metal and MidSmall Financial Services fell more than 0.5%. FMCG, PSU banks, media, energy, real estate and chemicals also witnessed selling pressure. In contrast, Nifty IT gained over 1%, while pharmaceutical and healthcare stocks registered gains.
Global Weakness
The cautious opening followed weakness in Asian markets, where technology stocks declined amid concerns over heavy artificial intelligence-related spending and mixed corporate earnings. US equities also ended lower on Thursday as investors reassessed technology companies' AI expenditure and the Federal Reserve's decision to keep interest rates unchanged.
Crude Concerns
Elevated crude oil prices continued to weigh on investor sentiment. Brent crude was trading at $113.96 per barrel, gaining more than 1%, while US West Texas Intermediate (WTI) crude rose over 1% to $104.99 per barrel. Market experts warned that rising crude prices could create additional challenges for Indian equities, particularly given the country's dependence on oil imports.
Institutional Activity
Foreign institutional investors (FIIs) sold shares worth approximately ₹943 crore on Thursday, ending their two-session buying streak. Domestic institutional investors (DIIs), however, continued buying for the second consecutive session, purchasing equities worth ₹1,924 crore.
Analysts noted that domestic investors were selectively buying growth-oriented small-cap stocks following the recent sharp correction. However, they cautioned that valuations remain elevated in several segments. They also suggested that large-cap stocks could offer relatively attractive opportunities following sustained foreign investor selling.
