The Nifty 50 index rose just 9 points to open flat at 23,960.70 points, while the BSE Sensex opened 0.15 percent higher at 79,335.48 points.
Experts said the unexpected reduction in the rate cut cycle by the US Fed has jolted markets globally. However, chances of a year-end rally are still there, but the sell-off by FPIs is again making bullishness difficult for the market.
“Indian markets are trying to shake off global ‘risk-off’ sentiments but this week’s FPI sell-off has so far derailed those efforts. We remain optimistic,” said Ajay Baga, banking and market expert. We may see a brief burst later in the year, but volatility makes any rally fragile for now.”
“Chairman Powell is seen by global markets as the Grinch who stole Christmas this year,” he added. Markets are suffering the consequences, which were surprised the US Fed called for faster and sharper rate cuts.”
Among the sectoral indices on Friday, Nifty IT, Nifty Media, and Nifty Pharma improved, while other indices continued their downward movement. Among the Nifty 50 stocks today, 13 stocks opened with gains, while 37 declined in the opening session.
Markets around the world are under pressure after the US Federal Reserve signaled that it will cut rates next year, three or four times less than expected.
“Support, near 23870, is also the area where the 61.8% Fibonacci retracement of the November-December advance meets the 200-day moving average. The three-day Momentum, as measured by the RSI, is below 10, and every time it breaks out, the prevailing downtrend has either stopped in the next few sessions is or has become a strategic move,” said Akshay Chanchalkar, head of research, Axis Securities.
Other Asian markets were also bearish on Friday. Japan’s Nikkei 225 index was flat after its central bank paused and left interest rates unchanged.