Indian equity benchmarks kicked off Friday's trading session on a negative note, mirroring subdued sentiment in global markets. Both the Nifty50 and the BSE Sensex opened in the red, with investors adopting a cautious stance in the absence of significant domestic catalysts.
Market Opening and Key Levels
At 9:16 AM, the Nifty50 was trading at 26,101.30, marking a decline of 41 points or 0.16%. The BSE Sensex was at 85,267.87, down by 141 points or an identical 0.16% drop. Analysts anticipate the markets to move within a narrow range as the year draws to a close, with only four trading days left for 2025.
Expert View: Consolidation and Strategy
Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, provided a detailed outlook. He noted that the anticipated Santa Claus rally seems to be losing momentum. "In the absence of fresh triggers like a US-India trade deal, the market is likely to consolidate around the present levels," he stated.
He highlighted that a robust 4.3% US GDP growth for Q3 2025 is strengthening the US market. This, coupled with the high profitability of US companies, including those in the AI sector, could prompt more foreign institutional investors (FIIs), especially hedge funds, to increase selling in India in the near term.
However, he assured that sustained buying by cash-rich domestic institutional investors (DIIs) will provide market support and prevent a sharp correction. Dr. Vijayakumar's recommended strategy is for investors to remain invested in high-quality large caps and accumulate them gradually during price dips. He expects a market rally in the early part of 2026 and cautioned against irrational valuations in some IPOs, calling it a sign of market exuberance.
Global and Commodity Cues
Asian markets witnessed modest gains amid thin holiday trading. Japanese and South Korean equities advanced, while several other regional bourses remained closed. In the commodities space, silver prices surged to a record high, with gold also trading near its all-time peak.
Oil prices edged higher due to geopolitical tensions. The United States intensified economic pressure on Venezuelan oil exports and conducted airstrikes against Islamic State militants in northwest Nigeria at the Nigerian government's request.
Institutional Activity
Data from the institutional front showed a mixed picture. On Wednesday, foreign portfolio investors (FPIs) were net sellers, offloading Indian equities worth Rs 1,721 crore. In contrast, domestic institutional investors (DIIs) were net buyers, providing support by purchasing shares worth Rs 2,381 crore.
