The Indian benchmark indices opened marginally lower on Friday Despite positive global cues. At 10 am, the Sensex was trading 42.30 points lower, or 0.05 per cent, at 79,499.49, while the Nifty dropped 30.30 points or 0.13 per cent, at 24,169.00. Of the total shares traded, 1,334 advanced, 1,727 declined, and 97 remained unchanged.
Tech Mahindra, Infosys, HCL Tech, Titan, and Sun Pharma were among the top gainers on the BSE Sensex, while ICICI Bank, Reliance Industries, Maruti Suzuki, NTPC and Tata Motors were the major losers.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “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 113858 crores in October, FIIs have so far, in November, sold equity for Rs 16445 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,” he added.
In the previous trading session on Thursday, Sensex fell by 836.34 points or 1.04 per cent, ending at 79,541.79, while the Nifty dropped 284.70 points or 1.16 per cent, closing at 24,199.30.