Benchmark indices opened marginally higher on Friday morning, with the starting at 24,818.85 from its previous close of 24,734.30 and trading at 24,774.05, up 39.75 points or 0.16 per cent, at 9.45 am. The opened at 81,012.42 against its previous close of 80,718.01 and was at 80,826.78, higher by 108.77 points or 0.13 per cent, as investors remained cautious following Thursday’s sharp gap-up opening that was later met with profit booking.
Auto stocks emerged as the top gainers in early trade, with leading the pack with a 1.59 per cent gain to ₹3,537.00, followed by Eternal at 1.53 per cent to ₹331.25 and Eicher Motors rising 1.50 per cent to ₹6,521.50. Maruti Suzuki and Tata Motors also contributed to the sectoral strength, gaining 1.23 per cent and 1.06 per cent, respectively.
“The initial enthusiasm witnessed in the market yesterday couldn’t be sustained. The expected short-covering did not happen, bringing the prices down towards the close,” said Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited.
On the downside, faced selling pressure with ITC declining 2.27 per cent to ₹406.45, while Nestle India dropped 1.26 per cent to ₹1,197.30. Tata Consumer Products and Hindustan Unilever also traded in the red, falling 0.73 per cent and 0.49 per cent, respectively.
Market experts attributed the mixed performance to ongoing concerns about valuations and global uncertainties. “The high valuations even amidst geopolitical and tariff-related headwinds helped bears to accumulate short positions in the market,” Vijayakumar added.
Are stock markets open or closed today?
While banks are closed in some states due to festivities, the (NSE) and remained open today. According to the stock market holiday calendar shared by the NSE and BSE, trading activities continued as usual on Friday. Eid-e-Milad and Onam celebrations are underway in many parts of India, but markets are not closed on this occasion. There are no additional holidays in September, with markets remaining closed only on weekends.
FII performance
Foreign institutional investors (FIIs) remained marginal net sellers at ₹106 crore, while domestic institutional investors (DIIs) continued their strong buying streak with inflows of ₹2,233 crore, providing crucial support to market sentiment.
“With high money muscle facilitated by the sustaining fund flows into the market, mutual fund buying will support the market during declines,” said Vijayakumar, noting that mutual fund buying in equity touched ₹70,500 crore in August.
Technical analysts highlighted key resistance and support levels for the indices. “The Nifty 50 index closed marginally above the 20-SMA on a daily chart, keeping the short-term trend in recovery mode. The 25,000 strike is emerging as the primary resistance zone for the index,” said Ponmudi R, CEO of Enrich Money.
Banking sector showed signs of recovery with Bank Nifty trading above the 54,000 mark. “Bank Nifty maintaining the important support zone near the 53,500 zone has indicated a significant pullback to end above the 54,000 zone, with HDFC Bank indicating prominent positive cues,” noted Vaishali Parekh, Vice President – Technical Research at PL Capital.
The commodities market witnessed mixed trends, with gold prices remaining near record highs supported by expectations of a Federal Reserve rate cut. “Gold prices remain near record highs, supported by persistent weakness in the US labour market, which has strengthened expectations of a Federal Reserve rate cut on September 17,” said Darshan Desai, CEO of Aspect Bullion & Refinery.
Crude oil prices continued their decline ahead of the OPEC+ meeting, weighed down by rising US inventories. “According to the US EIA, crude oil stocks jumped by 2.4 million barrels, contrary to forecasts of a 2.0 million barrel draw,” commented Rahul Kalantri, VP Commodities at Mehta Equities Ltd.
Looking ahead, market participants are focusing on the GST 2.0 reforms impact and upcoming US employment data. “While markets are likely to see a positive opening, the Next-Gen GST Reforms should strengthen the case for a consumption-led recovery, with auto and consumption expected to benefit the most,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The market sentiment remains cautiously optimistic with traders adopting a buy-on-dips strategy. “With improving technical momentum and steady domestic inflows, the near-term bias remains positive. Traders should adopt a buy-on-dips strategy and focus on stock-specific opportunities in leadership sectors like banking, IT and auto,” advised Mandar Bhojane, Sr. Technical & Derivative Analyst at Choice Broking.