MUMBAI: Indian stocks continued their weakness on Friday, opening flat on Friday, weighed by investment from foreign investors and the depreciation of the Indian rupee.
The Nifty 50 index opened flat at 23,960.70 points, up just 9 points, while the BSE Sensex opened 0.15% higher at 79,335.48 points.
Experts said that the Federal Reserve unexpectedly shortened the interest rate cut cycle, causing shock to global markets. However, chances of a year-end rebound still exist, but the sell-off in FPI has once again made it difficult for the market to rebound.
Banking and market expert Ajay Bagga said, “Indian markets are trying to shake off the global ‘risk off’ sentiment, but this week’s sell-off in FPIs has shaken efforts so far. We remain optimistic that there may be a short-lived burst at the end of the year, But volatility makes the current rally fragile.
“The Fed is calling for fast and drastic rate cuts.”
Among sectoral indices on Friday, Nifty IT, Nifty Media and Nifty Pharma recovered while other indices continued to fall. In today’s Nifty 50 stock list, 13 stocks opened with gains and 37 stocks opened with losses.
Global markets are under pressure after the Federal Reserve said it would cut interest rates less frequently next year than expected, from three to four.
“Support is near 23870, which is also where the 61.8% Fibonacci retracement level of the November-December rally meets the rising 200-day EMA. Three days of momentum, as measured by the RSI, have been below 10 and have been below 10 each time. Akshay Chinchalkar, head of research at Axis Securities, said: “If the decline dips to single digits, the current downward trend will either stall or trigger tactical developments in the next few sessions. ”
Elsewhere in Asia, sentiment also fell on Friday. The Nikkei 225 remained flat after the Bank of Japan paused without raising interest rates, while markets in Taiwan, South Korea and Indonesia continued to sell off and remained in the red at the time of filing this report.