India’s benchmark equity indices opened lower on Friday as investors exercised caution during the ongoing counting of votes for the Bihar Assembly elections.
Market sentiment remained subdued, with traders assessing the possible impact of the Bihar verdict on political stability at the Centre.
The Nifty 50 opened at 25,798.25, down 80.90 points or 0.31 per cent. The BSE Sensex began the session at 84,220.50, lower by 258.17 points or 0.31 per cent.
Market expert Ajay Bagga told ANI that volatility is expected through the day, given the political importance of the Bihar results.
“The politically significant state-level election outcome for Bihar will impact sentiments. The central government has 12 MPs from JD(U), which is part of the ruling coalition. The results and subsequent developments could influence the stability of the government as well,” he said.
Bagga noted that markets may move higher later in the day if trends favour the ruling coalition.
“Markets could see a strong up move by late noon if the ruling coalition remains ahead. This will be viewed as support for policy continuity and political stability,” he added.
In the broader market, the trend was mixed. The Nifty 100 fell 0.25 per cent, while the Nifty Midcap 100 gained 0.27 per cent. The Nifty Smallcap index rose 0.16 per cent, indicating selective buying in mid- and small-cap stocks.
Sectoral indices also reflected a mixed pattern. Nifty Auto declined 0.36 per cent, FMCG fell 0.26 per cent, and Nifty IT was down 0.95 per cent. Gains were seen in Nifty Media, which rose 0.53 per cent, while Nifty Pharma also traded in the green.
Nifty PSU Bank and Nifty Metal slipped 0.42 per cent each.
In the primary market, the IPO of edtech firm Physics Wallah continued to draw interest. On Day 3, the issue was subscribed 1.81 times, led by qualified institutional buyers at 2.70 times. Retail subscription stood at 1.06 times, while non-institutional investors subscribed 0.48 times.
Global cues remained weak. US markets saw a sharp decline on Thursday over concerns surrounding AI-linked valuations and the US Federal Reserve’s indication that a December rate cut is not assured.
Asian markets also opened lower, tracking the weak US close and following disappointing economic data from China.
(ANI)