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Indian equity indices were muted at the opening bell on Friday
Last week, the BSE benchmark climbed 321.83 points, or 0.40 per cent.
Benchmark equity indices, BSE Sensex and NSE Nifty50, ended in the red for the second consecutive session on Friday.
The BSE Sensex shed 55.47 points or 0.07 per cent to settle at 79,486.32, while the Nifty 50 declined 51.15 points or 0.21 per cent to 24,148.20.
As many as 27 out of 50 NSE Nifty50 constituent stocks ended in the red, dragged down by Trent, Coal India, Tata Steel, Asian Paints, and State Bank of India, with losses extending up to 3.50 per cent.
Conversely, Mahindra & Mahindra, Titan, Tech Mahindra, Nestle India, and Infosys were among 23 constituent stocks of Nifty50 that managed to settle in the green on Friday, with gains extending up to 2.40 per cent.
The broader markets settled in the red, with Nifty Midcap100 and Nifty Smallcap100 falling 1.33 per cent and 1.70 per cent, respectively.
All sectoral indices ended in the red, except for Nifty IT, Pharma and FMCG. Nifty Realty, and Media were the top laggards among the sectoral indices, falling by over 2 per cent each.
Market View | Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services
“Two divergent trends are evident in the market now: one, strength in the global market led by the US and two, weakness in the Indian market. The record setting uptrend in the US market is being driven now by the ‘Trump trade’, expectations of implementation of the promised corporate tax cuts and its positive impact on US corporate earnings. The weakness in the Indian market can be attributed largely to the relentless selling by FIIs which continues this month, too. After the massive FII selling of Rs 1,13,858 crores in October, FIIs have so far, in November, sold equity for Rs 16,445 crores in the cash market. The rationale for the FII selling is the elevated valuations in India which appear conspicuous in the context of the earnings deceleration evident in the Q2 numbers. If the Q3 numbers and leading indicators reflect recovery in earnings, the scenario can change with FIIs reducing selling and even turning buyers. Investors will have to wait and watch for the data. Meanwhile, investors can consider shifting some money from the overvalued mid and smallcaps to quality largecaps. This strategy will turn profitable in the medium to long run.”
Global Cues
Asia-Pacific markets, meanwhile, climbed on Friday, following the US Fed’s action.
Japan’s Nikkei 225 climbed 0.3 per cent, while the broad-based Topix rose 0.1 per cent.
South Korea’s Kospi was up 0.7 per cent, and the small-cap Kosdaq gained 1.5 per cent.
Hong Kong’s Hang Seng index advanced 1 per cent, while mainland China’s CSI 300 saw a gain of 1.01 per cent. The Shanghai Composite was ahead by 0.6 per cent.
Australia’s S&P/ASX 200 rose 0.9 per cent.
That apart, shares on Wall Street scaled record highs on Thursday, lifting stock markets around the world, while US Treasury yields retreated further after the Federal Reserve cut interest rates and as investors processed a second Donald Trump presidency.
The S&P 500 rose 0.74 per cent, the Dow Jones Industrial Average was flat, and the Nasdaq Composite jumped 1.5 per cent. The S&P 500 and the Nasdaq both ended at all-time highs for a second consecutive day.
The MSCI index for world stocks climbed 0.9 per cent, also to a record high.
Europe’s broad STOXX 600 index rose 0.6 per cent after Asian shares gained earlier in the day, with even onshore Chinese blue chips rising 3 per cent as investor optimism over potential stimulus outweighed concerns about worsening trade tensions.
