The Indian stock market opened lower on Friday. In early trade, the Sensex fell by 170 points and the Nifty slipped below 25,400. Global cues, the Bank of Japan's decision, and IPO activity are impacting the market.
Stock Market Today: The Indian stock market opened lower on Friday, the last trading day of the week. In early trade, the Sensex fell by 170 points and the Nifty slipped below 25,400. Mixed signals from Asian markets and the anticipation of the Bank of Japan's (BoJ) interest rate decision are influencing market movement.
Previous Session's Performance
On Thursday, the markets closed with strength. The Sensex gained 320.25 points or 0.39% to close at 83,013.96. Meanwhile, the Nifty rose by 93.35 points or 0.37% to settle at 25,423.60. Following this strength, investors hoped the market would show a positive trend on Friday. However, the market opened in the red in early trade.
Signals from Gift Nifty
At 8 AM on Friday, Gift Nifty Futures were trading down 48 points at 24,466. This was a clear indication that Indian markets would open lower.
Impact of Global Markets
Indian markets are being directly influenced by international markets.
Mixed Trend in Asian Markets
Japan's Nikkei Index rose 0.8%, reaching a record high for the second consecutive session.
- The Topix Index recorded a 0.72% gain.
- Australia's ASX 200 Index was up 0.74%.
- South Korea's KOSPI Index fell 0.5%.
Focus on Japan's Inflation
Japan's Core Inflation declined to 2.7% in August, the lowest since November 2024. This marks the third consecutive month of falling inflation. Headline inflation also decreased from 3.1% in July to 2.7%.
Wall Street's Strength
US markets saw gains on Thursday.
- S&P 500 gained 0.48%.
- Nasdaq rose 0.94%.
- Dow Jones was up 0.27%.
All three major US indices reached their all-time intraday highs on Thursday. This surge came after signals that the Federal Reserve (Fed) might begin an interest rate cutting cycle.
Bank of Japan's Key Decision
Investors are awaiting the outcomes of the Bank of Japan's policy meeting. It is expected that interest rates will remain stable at 0.5%. If the BoJ makes any significant changes, it will directly impact Asian and Indian markets.
IPO Market Activity
The Indian stock market will also witness several IPO-related activities on Friday.
- iValue Infosolutions IPO (Mainline) and JD Cables IPO (SME) will enter their second day of subscription.
- VMS TMT IPO (Mainline) and Sampat Aluminium IPO (SME) will reach their third day of subscription.
- Allotment for Euro Pratik IPO (Mainline) will take place.
- L T Elevator IPO (SME) will be listed on the stock exchange today.
These activities in the IPO market could impact investor sentiment.
Sectors Under Pressure
After Thursday's rally, banking, IT, and auto sectors showed pressure in early trade on Friday.
- Banking Stocks slipped in early trade.
- IT Stocks came under pressure due to the impact of global tech markets.
- The Auto Sector saw mild selling.
