Mumbai (Maharashtra) [India], November 28 : The domestic stock markets entered a consolidation phase in early trade on Friday, a day after both benchmark indices touched fresh all-time highs, as traders booked profits at higher levels.
Profit booking was expected, and market participants awaited clearer cues to assess the next move.
The Nifty 50 index opened at 26,237.45, gaining 21.90 points (0.08 per cent), while the BSE Sensex opened at 85,791.55, up 71.17 points (0.08 per cent).
On Thursday, both indices had scaled new lifetime peaks, with the Sensex hitting 86,055.86 and the Nifty touching 26,310.45.
Experts, however, cautioned that despite the record-breaking milestone, foreign investors remained sellers on Thursday, signalling the need for careful monitoring of market direction.
Ajay Bagga, Banking and Market Expert, told ANI, "Indian markets broke through 14 months all time levels but follow through progress will be key here on. FPIs remained net sellers on Thursday. Looming mega IPOs will constrain secondary market gains and with no sign of the so called 'imminent' US-India trade deal fructifying, markets are taking the global risk on tailwinds for now. Expect a subdued day given the US market break and lack of positive cues."
In the broader market on NSE, movement was mixed in early trade. Nifty 100 gained 0.06 per cent, while Nifty Midcap 100 fell 0.04 per cent, and Nifty Smallcap 100 slipped 0.12 per cent as volatility increased due to profit booking after the indices touched fresh highs.
Sectoral trends on NSE also showed a similar mixed pattern. Nifty Media was down 0.14 per cent, Nifty Financial Services declined 0.03 per cent, and Nifty Oil & Gas dropped 0.41 per cent.
Meanwhile, several sectors traded in the green with marginal gains. Nifty Auto rose 0.54 per cent, Nifty FMCG gained 0.17 per cent, Nifty IT edged up 0.12 per cent, and Nifty PSU Bank increased 0.17 per cent.
Ponmudi R, CEO, Enrich Money, said, "Indian equity markets are likely to remain in a consolidation phase today after touching fresh record highs in the previous session. The overall sentiment continues to stay positive, supported by strong domestic institutional buying, steady performance in banking and metal stocks, and supportive global cues such as softer U.S. bond yields. However, since the market is now trading near peak resistance zones, some profit booking is expected, which may lead to short-term volatility. Nifty 50 is currently hovering near its lifetime high resistance zone of around 26,277-26,300, where selling pressure is visible."
With the Thanksgiving holiday on Thursday and half-day trading on Friday in the US markets, global cues remained limited. In Asia, markets showed a mixed trend. South Korea's KOSPI declined more than 1.2 per cent, and Japan's Nikkei 225 was also trading in the red. Meanwhile, Taiwan's Weighted Index, Hong Kong's Hang Seng, and Singapore's Straits Times were in the green at the time of filing this report.
Markets now await further signals that could determine whether the indices continue their upward momentum or see extended consolidation in the sessions ahead.
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