Indian Stock Market Opens Flat Amid Weak Investor Sentiment

On Friday, the Indian stock market had a flat start as investor sentiment remained weak, primarily due to ongoing sales by Foreign Portfolio Investors (FPIs) and an uninspiring earnings season in the IT sector. The Nifty 50 index opened at 25,108.55, down slightly by 2.90 points, reflecting a decrease of 0.01 percent. The BSE Sensex opened at 82,193.62, recording a decline of 65.62 points or 0.08 percent. Analysts point to the disappointing earnings reports in the IT sector as a significant factor in the market's lackluster performance.

Ajay Bagga, a banking and market expert, noted the persistent FPI selling and the underwhelming earnings from the IT sector as contributors to the market's subdued opening. He indicated that as more prominent companies release their earnings, their projections could potentially serve as a catalyst for market movements. Furthermore, Bagga highlighted the impact of global factors such as concerns regarding the U.S. deficit, policy uncertainties under Trump's administration, tariff issues, and apprehensions surrounding the U.S. Federal Reserve and Chairman Powell. However, he mentioned that strong earnings and a stable U.S. economy provide a hopeful element that could propel markets to new heights.

Across the broader market indices on the National Stock Exchange (NSE), the Nifty 100 saw a decline, while the Nifty Small Cap 100 and Nifty Midcap 100 recorded slight gains. Sector-wise performance showed Nifty IT up by 0.40 percent, Nifty Metal increasing by 0.51 percent, and Nifty Auto rising by 0.23 percent during the opening. In contrast, indices including Nifty FMCG faced losses, as did Nifty Pharma and Nifty PSU Bank.

SBI Securities anticipated that sectors such as PSU Bank, Pharma, Healthcare, Automobile, Consumer Durable, FMCG, and Tourism might outperform in the near term, whereas Defence and IT sectors were expected to lag. Akshay Chinchalkar, head of research at Axis Securities, observed that technical indicators suggested a bearish trend, with the market needing to close above certain resistance levels to avoid a downturn. He emphasized the importance of monitoring the support level at 25,000.

Several major corporations were set to release their first-quarter earnings report that day, including Reliance Industries, Hindustan Zinc, and various others, indicating potential market responsiveness.

Regarding other Asian markets, Japan's Nikkei 225 and South Korea's KOSPI indices faced selling pressure, while some other indices, such as Taiwan's Weighted Index, Hong Kong's Hang Seng, and Singapore's Straits Times, posted gains at the time of reporting.