Stock Market Today: Nifty, Bank Nifty Slip; Global Cues Weak
Indian equity markets opened on a weak note this Friday, marking the last trading session of the week. Gift Nifty was trading nearly 122 points lower, reflecting mild negativity across Asian markets. Interestingly, there is no major negative trigger in the US markets, yet global indices are mirroring a correction.
On Thursday, the Nifty 50 closed 166 points down, slipping below the 25,000 mark, while Bank Nifty ended under 55,000. Analysts note that most positives in Indian equities are already factored in, and there is neither a fresh domestic negative trigger nor a new positive catalyst at the moment.
A key global development came from the US, where authorities announced 100% tariffs on pharma companies that do not have local production facilities. However, most Indian pharma firms already have facilities in the US. Companies lagging in compliance are expected to align within weeks or months. The move is largely aimed at creating more local employment in the US, easing pressure on its social security funds.
Back home, Hindustan Zinc surged 3% in yesterday’s trade, leading the metal pack alongside Vedanta. Oil India and PNB Housing were also among the top gainers. Analysts suggest keeping a close watch on PNB Housing, which had earlier corrected sharply only due to the resignation of a top executive.
On the losing side, Kalyan Jewellers fell over 3.5%, impacted by muted festive demand as gold prices remain elevated. Trend and Power Grid also shed nearly 3% each, while Tata Motors closed lower by close to 3%.
In commodities, gold prices corrected slightly from higher levels but continue to hold strong value, while silver rallied to around ₹1.37 lakh per kg. The Indian Rupee showed relative strength against major global currencies, though it continues to hover near ₹89 per US dollar, reflecting structural weakness.
Key Market Levels:
- Nifty 50 now faces resistance at 25,000–25,100 after breaching these support levels. Immediate support is placed at 24,800.
- Bank Nifty resistance stands at 55,000–55,050. A breakout could trigger short covering towards 55,350. On the downside, a fall below 54,800 may deepen the correction.
On the institutional front, FIIs sold equities worth ₹598 crore on Thursday, while DIIs bought ₹515 crore. Volatility Index inched up from 10.52 to 10.78, still below the long-term average of 12. Put-Call Ratio declined to 0.68 from 0.87, reflecting higher call writing.
Corporate Updates:
- RITES secured a multi-million dollar export order from South Africa for diesel-electric locomotives.
- Shivalik India bagged a ₹509 crore road development order from GMADA in Mohali.
- Exide announced an ₹80 crore capex for setting up a new lithium-ion battery facility in Bengaluru.
- Tata Motors confirmed that some JLR manufacturing operations have resumed post a cyber-attack.
- Polycab shares drew attention after promoters offloaded a 1.5% stake, which was picked up by marquee investors including JP Morgan, Morgan Stanley, Kotak Life, and HDFC Life.
- D-Mart opened a new store in Andhra Pradesh.
- Ventive Hospitality announced its entry into Goa’s hospitality market despite underperformance in the segment.
Among negatives, promoter stake sales were seen in GRM Overseas (2.6%) and some block deals in Cosara Industries and RBL Bank. Only two stocks remain under the F&O ban list: Samman Capital and RBL Bank.
Two earnings are due today — Athir and Ashapura — both of which may see stock-specific action. Analysts recommend close watch on pharma and IT stocks in particular.
Meanwhile, IPO activity remains strong with 21 issues currently in the pipeline. Market experts advise investors to track updates closely for potential listing opportunities.
