Nifty 50 index drops in early trade, market opens slow

Indian benchmark indices began Friday’s trading session on a subdued note influenced by global trends. The Nifty 50 index dropped by 29 points to 22,374.20 in early trade, while the BSE Sensex fell by 149 points to 73,548 at the time of this report.

“On Friday, the global handover is soft, while the domestic impulse is bullish. Given that India has underperformed due to domestic issues, the ECI data could lead to FOMO buying in Indian equities. We remain cautious heading into the June 4th election results announcement. Voter turnout has no predictive power in indicating election results. However, market sentiments are being impacted by this number, so we can expect some continued upward movement,” said Ajay Bagga, a banking and market expert.

He further added, “The FII selling intensity moderated on Thursday, and as FIIs come to liquidate their large short positions in the derivatives markets, Indian markets will experience an upsurge.”

In the Nifty 50 Index, Mahindra & Mahindra emerged as the top gainer of the day, with shares surging more than 6 percent following the announcement of the company’s financial results. Tata Motors, Grasim, and BPCL also featured among the top gainers, each rising by more than 1 percent.

The top losers of the day included SBILIFE, Axis Bank, Sun Pharma, Adani Ports, and IndusInd Bank. In market statistics, a total of 2,166 stocks opened for trading on Friday in NSE, with 1,450 trading in advance, 633 in decline, and 83 remaining unchanged.

The commodity market saw gains, with WTI crude on track for a third consecutive day of increases and gold slightly higher. Bitcoin traded above USD 65,000 after stabilizing from a previous decline.

In the US market on Thursday, the Dow Jones Industrial Average crossed the 40,000 level for the first time, with experts attributing the recent rally to hopes of rate cuts from the Fed in the coming months. The Dow peaked at 40,051.05 during the trading session and closed at 39,869.38.

Earlier in April, the index attempted to cross the 40,000 mark but closed near it following a market pullback due to concerns about high-interest rates. The Dow Jones first crossed the 30,000 mark in November 2020.