Stock market today: Nifty50 opens below 25,400; BSE Sensex down over 450 points

Stock market today: Nifty50 and BSE Sensex, the Indian equity benchmark indices, opened in red on Friday on weak global cues. While Nifty50 went below 25,400, BSE Sensex was down over 450 points. At 9:19 AM, Nifty50 was trading at 25,379.75, down 130 points or 0.51%. BSE Sensex was at 82,855.57, down 455 points or 0.55%.Market analysts indicate that the current phase shows consolidation with a downward tendency. They note that for Nifty, surpassing 25,700 is essential for restoring upward momentum, whilst dropping below 25,500 could lead to further declines in the near term.Dr. VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited says, “A significant feature of the present market trend is that despite the DIIs buying far more than what the FIIs are selling ( Rs 5283 crore DII buying vs Rs 3263 crore FII selling yesterday) the market continues to drift down. The huge shorting by FIIs are overpowering the DII and investor buying in the market. The success of the FII strategy of sustained selling in India and moving money to cheaper markets has emboldened them to continue the strategy and continue shorting the market. Short covering can lead to trend reversal but there are no immediate triggers for that in sight. But markets have an uncanny ability to surprise.” “This is an ideal time for investors to churn portfolios in favour of fairly-valued large caps. FII selling has reduced the prices of fairly valued large caps particularly in banking and pharmaceuticals where growth prospects continue to be bright.”Stock markets in Asia declined on Friday, following drop in US markets, as investors assessed disappointing US employment figures alongside the Federal Reserve’s indication of maintaining current interest rates through year-end.Concerns intensified regarding overvalued shares, particularly in the technology sector, following substantial gains recorded this year, contributing to market uncertainty.The week’s volatile trading appeared headed for a downward close after Challenger, Gray & Christmas revealed that US job cut announcements reached their peak in 22 years during the previous month.The findings indicated that the current year has witnessed the most severe employment reductions since 2020, when the job market suffered extensive losses due to the pandemic.On Wednesday, Foreign Portfolio Investors (FIIs) saw net sales of Rs 3,263 crore in shares. Domestic Institutional Investors (DIIs) showed positive activity with net purchases of Rs 5,284 crore.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)