Indian equity markets opened on a weak note on Friday, tracking global uncertainties and subdued investor sentiment. The Sensex slipped 102 points in early trade, while Nifty also showed a slight decline. Market volatility was fueled by selling pressure in IT and auto stocks, along with concerns over the impact of newly imposed US tariffs on overseas car imports. However, select banking and metal stocks provided some support to the indices, preventing a steeper decline.
At 9:28 AM, the BSE Sensex was down by 102.31 points, or 0.13%, trading at 77,504.12. Meanwhile, the NSE Nifty dropped 25.25 points, or 0.11%, to 23,566.70. Nifty Bank, however, showed resilience, gaining 209.20 points, or 0.41%, to reach 51,785.05. Broader markets performed relatively better, with the Nifty Midcap 100 rising 604.25 points, or 1.17%, to 52,443.65, while the Nifty Smallcap 100 climbed 215.75 points, or 1.34%, to 16,335.60.
Analysts pointed out that despite early weakness, Nifty displayed strong buying interest, recovering nearly 213 points from lower levels before settling into a sideways movement. This pattern led to the formation of a bullish piercing candle, indicating stability above the crucial 23,500 support level. Experts suggest that if Nifty sustains above 23,600, further gains towards the 23,700-23,800 zone are possible, while key support levels remain at 23,400 and 23,260.
Among Sensex constituents, Kotak Mahindra Bank, UltraTech Cement, Tata Motors, SBI, Tata Steel, Nestle India, Asian Paints, and HDFC Bank were the top gainers, helping limit losses. On the other hand, stocks such as Mahindra & Mahindra, PowerGrid, Infosys, Sun Pharma, and IndusInd Bank were among the worst performers in early trade.
Global markets also exhibited weakness, contributing to the cautious mood among investors. In the US, the Dow Jones closed 0.37% lower at 42,299.70, while the S&P 500 and Nasdaq fell 0.33% and 0.53%, respectively. The US indices saw volatile swings throughout the trading session before settling lower. Market sentiment was further dampened by the announcement of new tariffs on imported cars and auto parts, imposing a 25% levy. General Motors suffered a steep decline of 7.3%, making it the worst-performing stock in the S&P 500.
Asian markets mirrored this trend, with Japan, South Korea, China, Bangkok, and Hong Kong trading in the red. Institutional participation remained strong, with Foreign Institutional Investors (FIIs) purchasing equities worth Rs 11,111.25 crore on March 27, while Domestic Institutional Investors (DIIs) invested Rs 2,517.70 crore. Despite near-term concerns, analysts believe selective buying at lower levels could provide trading opportunities in the coming sessions.
