Domestic benchmark indices opened under pressure on Friday, with both the Nifty 50 and BSE Sensex witnessing sharp declines amid weak global cues and prevailing risk-off sentiment.
The Nifty 50 was trading at 25,571.15, down 236.05 points or 0.91 per cent. The BSE Sensex also opened lower at 82,902.73, falling 772.19 points or 0.92 per cent.
Experts said IT stocks came under sharp pressure due to weakness in the global tech sector and broad risk-off sentiment.
Ajay Bagga, Banking and Market Expert, told ANI, “Indian futures are pointing to another 0.5 per cent cut in the leading indices this morning as global risk-off sentiment impacts Indian stocks as well. In aggregate, the key themes across Asia this morning include broad equity declines as U.S. risk-off sentiment carries over to the region. Tech sector weakness is dominating sectoral performance, amplified by AI valuation repricing and disruption threats, leading to a sell-off in SaaS stocks.”
He added, “Bond yields are lower globally, reflecting growth concerns and weak housing demand in the U.S. The U.S. dollar is losing some safe-haven appeal, though movements remain mixed across currency pairs. The yen is appreciating, reflecting safe-haven flows and relative rate dynamics. Oil prices are sliding on softer global demand forecasts, reinforcing risk-off sentiment. Market participants will be closely watching upcoming U.S. CPI data, which could either confirm the slowdown narrative or trigger further repricing in bond yields and equities.”
In the broader market on the National Stock Exchange, the Nifty 100 declined 0.54 per cent, the Nifty Midcap 100 fell 0.47 per cent, and the Nifty Smallcap 100 dropped 0.64 per cent.
Among sectoral indices on the NSE, Nifty IT plunged 5.51 per cent, emerging as the worst-performing sector. The sharp fall in IT stocks comes amid global tech weakness, AI valuation repricing, and concerns over AI-led disruption in SaaS companies.
Nifty Auto slipped 0.12 per cent, Nifty Media declined 1.31 per cent, Nifty Realty fell 1.45 per cent, and the Nifty Oil and Gas index was down 1.19 per cent.
Asian markets also traded mostly in the red on Friday. Japan’s Nikkei index declined 0.74 per cent to 57,215. Singapore’s Straits Times fell 1.18 per cent to 4,957. Hong Kong’s Hang Seng index dropped 1.86 per cent to 26,530. However, South Korea’s KOSPI rose marginally by 0.32 per cent to 5,540. Taiwan’s markets were closed for a holiday.
In the commodities segment, Brent crude slipped marginally by 0.05 per cent to USD 67.48 per barrel. Gold prices surged around 1 per cent to Rs 1,54,300 per 10 grams for 24 karat, while silver rose 1.66 per cent to Rs 2,40,393 per kg on Friday.
U.S. markets had closed lower on Thursday. The S&P 500 declined 1.57 per cent to 6,832, while the Nasdaq fell more than 2 per cent to 22,593, reflecting heavy selling pressure.
With global markets under strain and IT stocks witnessing a sharp correction, Indian equities remain under pressure as investors closely monitor global cues and upcoming U.S. CPI data for further direction.
(ANI)
