Indian Equity Benchmarks Witness Fifth Consecutive Day of Decline

On Friday, the Indian equity market experienced a significant downturn as both the BSE Sensex and Nifty50 indices continued their downward trajectory for the fifth consecutive day. The BSE Sensex was hovering just above the 79,000 mark, while the Nifty50 index was trading near the 23,900 level.

At 9:19 AM, the BSE Sensex was trading at 79,049.92, down by 168 points or 0.21%, and the Nifty50 was at 23,907.15, down by 45 points or 0.19%. This broad-based decline in the Indian markets followed the global market turbulence triggered by the hawkish stance of the US Federal Reserve on interest rates.

According to Ajit Mishra, SVP, Research, Religare Broking, "Despite the weakness, oversold conditions and resilience in select pockets present buying opportunities. Traders are advised to align their positions carefully, with an emphasis on prudent stock selection."

The markets remain under pressure following the Federal Reserve's strict commentary. Support exists at 23,850, with resistance at 24,200, as per Rupak De of LKP Securities.

Meanwhile, US markets remained stable after the Federal Reserve projected fewer rate cuts. Asian equities were also constrained in early Friday trading, influenced by the Fed's strict stance on American equities and bonds, which strengthened the dollar.

Gold prices headed towards a weekly decline following the Federal Reserve's decision on monetary policy adjustments, indicating slower rate reductions. Attention now turns to the U.S. Personal Consumption Expenditure data scheduled later.

Foreign portfolio investors became net sellers at Rs 4,224 crore on Thursday, while domestic institutional investors disposed of shares worth Rs 3943 crore. The FIIs' net short position increased from Rs 1.01 lakh crore on Wednesday to Rs 1.25 lakh crore on Thursday.