Key Highlights:

  • Sensex added 96 points to 73,676, while Nifty rose 20 points to 23,084 in early trade Friday.
  • Nifty IT was the top loser, down 1.37%, while Nifty Realty led gains, up 0.59%.
  • The US 10-year Treasury yield moved above 5.20%, remaining close to multi-year highs and pressuring emerging market equities.
  • Continued uncertainty over US-Iran diplomatic progress kept global investors cautious amid energy supply route risks.
  • FIIs were net sellers at Rs 5,027 crore on September 24, while DIIs bought equities worth Rs 4,301 crore.

A Cautiously Positive Start

The Indian equity markets opened with marginal gains early on Friday, amid rising US Treasury yields and continued geopolitical uncertainty weighing on overall sentiment.

Opening Numbers

As of 9:24 am, the Sensex was up 96 points, or 0.13 per cent, to reach 73,676, and the Nifty was up 20 points, or 0.09 per cent, to reach 23,084, offering a modest recovery attempt following the previous session's sharp decline.

Broader Markets Track the Benchmarks

Main broad-cap indices performed in line with the benchmark indices, as the Nifty Midcap 100 inched up 0.03 per cent, and the Nifty Smallcap 100 added 0.06 per cent, reflecting a broadly cautious but stable tone across market capitalisations.

Sectoral Performance

Sectoral indices on the NSE traded mixed, with IT, FMCG, consumer durables and healthcare posting losses. Nifty IT was the top loser, down 1.37 per cent. Nifty Realty was the top gainer, up 0.59 per cent, continuing its recent run of relative strength even amid the broader market's cautious tone.

Elevated US Treasury Yields

The US 10-year Treasury yield has moved above the 5.20 per cent mark and remains close to multi-year highs, increasing pressure on global financial conditions and reducing the relative attractiveness of emerging market equities. The rise in global yields, combined with a stronger dollar, has also added pressure on the Indian rupee, analysts said.

Ongoing Geopolitical Uncertainty

On the geopolitical front, uncertainty remains elevated as diplomatic progress between the US and Iran remains unclear. Renewed tensions and continued risks around energy supply routes are keeping global investors cautious, with any further escalation capable of pushing crude prices higher again, a factor that continues to weigh heavily on overall market sentiment.

Nifty's Technical Levels

In the previous session, Nifty closed at 23,063, down 1.64 per cent. Immediate support is placed at 22,800-23,000, while resistance is seen at 23,250-23,300, giving traders a fairly tight range to monitor following Thursday's sharp selloff.

Bank Nifty's Position

Bank Nifty closed at 55,438, down 1.96 per cent in the previous session. Immediate support is placed at 55,000-55,200, while resistance is seen at 55,800-56,000, reflecting the continued pressure on banking and financial stocks following the previous day's steep decline.

Mixed Performance Across Asian Markets

In Asian markets, China's Shanghai index shed 1.04 per cent, and Shenzhen lost 2.34 per cent. Japan's Nikkei added 1.23 per cent, and Hong Kong's Hang Seng Index declined 1.77 per cent. South Korea's Kospi added 0.9 per cent, presenting a fairly mixed regional backdrop for Indian markets to draw cues from.

A Largely Negative Close on Wall Street

US markets ended largely in the red overnight, even as the Nasdaq added 0.01 per cent. The S&P 500 lost 0.02 per cent, and the Dow Jones shed 0.31 per cent, giving Indian markets a broadly subdued lead-in from US trading.

Institutional Flows

On September 24, foreign institutional investors (FIIs) net sold equities worth Rs 5,027 crore, while domestic institutional investors (DIIs) bought equities worth Rs 4,301 crore, with domestic buying continuing to offset a fairly significant round of foreign investor selling in the Indian market.