Markets open lower as tech stocks drag; Reliance gains on strong Q3
Equity benchmarks opened lower on Friday morning, with the Sensex opening slightly higher at 77,069.19 compared to its previous close of 77,042.82 but declined to 76,615.67, losing 427.15 points or 0.55 per cent. Similarly, the Nifty opened lower at 23,277.10 against its previous close of 23,311.80 and is currently at 23,197.30, down by 114.50 points or 0.49 per cent.
“The market is patiently awaiting the upcoming budget, with some betting on the focus of the reforms this session,” said VLA Ambala, SEBI Registered Research Analyst and Co-Founder of Stock Market Today. “One of the factors behind the rally in railway stocks could be the anticipated 15-20 per cent increase in CAPEX for the Indian Railways in the upcoming budget, increasing allocation from INR 2.65 lakh crore in FY25 to over INR 3 lakh crore in FY26.”
IT major Infosys led the losses, plunging 5.63 per cent despite reporting an 11.4 per cent rise in Q3 profit to ₹6,806 crore, as its American Depositary Receipts (ADRs) fell 5 per cent overnight. The banking sector also witnessed significant selling pressure, with Axis Bank dropping 4.96 per cent and ICICI Bank declining 1.50 per cent.
However, oil-to-telecom conglomerate Reliance Industries provided some support to the markets, gaining 2.21 per cent after reporting a 12 per cent increase in Q3 profit to ₹21,930 crore. “The Q3 results from Reliance Industries are better than expected and have the potential to lead a minor recovery in the market,” said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
The metal sector showed strength with Hindalco rising 1.97 per cent, supported by base metal prices hitting a two-month high on the London Metal Exchange. Energy stocks also performed well, with BPCL gaining 1.69 per cent after signing a ₹31,802 crore loan agreement with a State Bank of India-led consortium for its Bina project.
Global factors continued to influence market sentiment, with oil prices retreating from five-month highs following a ceasefire agreement between Israel and Hamas. Brent crude declined 1 per cent to below $81 per barrel. Gold prices reached a month-high of $2,700 per ounce after US inflation data suggested potential Federal Reserve rate cuts this year.
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth ₹4,341 crore, while Domestic Institutional Investors (DIIs) bought shares worth ₹2,928 crore in the previous session. “The declining trend in the dollar index and US bond yields continues, but the declines are not adequate to arrest the sustained selling by FIIs,” Vijayakumar added.
Technical analysts suggest immediate support for Nifty at 23,200, followed by 23,000. “If the index breaches the critical 23,000 level, the selling momentum could extend towards 22,800,” said Hardik Matalia, Derivative analyst at Choice Broking.
Market participants are now awaiting key economic data from China, including December industrial output, retail sales figures, and fourth-quarter GDP data. Additionally, upcoming quarterly results from major companies like Wipro, Tech Mahindra, and SBI Life Insurance will be closely watched for further market direction.
The volatility index, India VIX, was trading at 15.46, up 1.36 per cent from the previous session, indicating continued market uncertainty. Traders are advised to maintain caution and implement strict stop-loss measures given the current market conditions.
