Indian markets opened largely flat this Diwali, with no major shifts to mark the festive trading day. During the Mahurat trading session on Friday, both the Nifty and Sensex indices showed minor declines, struggling amid a tug-of-war between bullish and bearish sentiments. The Nifty index saw a slight dip, down by 0.06 percent to 24,326.75 points, while the BSE Sensex index also hovered near its previous level, slipping by 0.10 percent to 79,859.62 points.
Market analysts pointed out the need for a balanced fiscal and monetary approach to encourage economic growth in the coming months. “Happy Diwali and Shubh Samvat 2081. We are going into Samvat 2081 with a consensus that markets will be challenged and will mean revert, leading to an underpowered year coming up. Predictions are at best intelligent guesstimates so we will refrain from that. What is clear is that, some counter cyclical measures are needed from India, both on the fiscal and monetary front, to tackle the issue of “not as sharp growth in aggregate demand” said Ajay Bagga, Banking and Market Expert.
He further added, “The festival season is key to the annual consumption numbers and the combination of 35 lakh marriages and around Rs 4.5 lakh crores of private consumption expenditure is expected to provide some relief from a slowing growth trajectory”.
In terms of sectoral performance, the National Stock Exchange showed a mixed trend. Nifty Bank saw a marginal rise, while indices like Nifty Auto, FMCG, Media, and Metal experienced pressure. Nifty IT, in particular, saw a decline of more than 1.5 percent.
Cipla shares surged over 8 percent, emerging as the top gainer within the Nifty 50. Conversely, IT heavyweights like Infosys, TCS, and Tech Mahindra faced selling pressure, ranking among the top losers. Foreign Institutional Investors (FIIs) also continued selling on Wednesday, with net outflows reaching Rs 4,613.65 crore.
Akshay Chinchalkar, Head of Research at Axis Securities, commented on the technical outlook, observing that the market’s oversold condition might hint at a recovery. “For bulls to take control, it’s critical to hold the Tweezer bottom lows near 24,130 and then move above 24,500, which would signal a potential rebound,” he said, referencing recent low levels in stocks trading above their 50-day moving averages – the lowest since March 2023.
Meanwhile, Asian markets also showed mixed results. Japan’s Nikkei 225 fell by 0.4 percent, South Korea’s KOSPI declined 0.75 percent, while Hong Kong’s Hang Seng gained 0.79 percent. In the U.S., markets followed a similar pattern on Wednesday, with the S&P 500 dipping 0.33 percent and the Nasdaq dropping by 0.56 percent.
As India’s festival season progresses, market participants remain cautiously optimistic, keeping a close watch on domestic policies and global trends for cues that could influence the market direction in the near term.
(ANI)