Market Overview

Indian equity benchmark indices, BSE Sensex and Nifty50, experienced a significant drop in opening trade on Friday. The BSE Sensex was down over 450 points, while Nifty50 fell below 23,200. By 9:18 AM, BSE Sensex was trading at 76,607.41, marking a decrease of 435 points or 0.57%. Similarly, Nifty50 was at 23,176.25, down by 136 points or 0.58%.

Market indices had shown positive momentum on Thursday, buoyed by subdued US inflation figures hinting at potential Federal Reserve rate reductions.

Corporate Earnings Influence

Friday's trading session is expected to be heavily influenced by the financial results of key companies such as Reliance, Infosys, and Axis Bank. "Despite recent index movements lacking clear direction, the resilience of the banking sector, which holds significant weight, is a positive indicator. Amid these mixed signals, investors are advised to focus on selective stock picking and robust risk management strategies," stated Ajit Mishra, SVP of Research at Religare Broking.

Technical Analysis

According to Nagaraj Shetti of HDFC Securities, breaking above the 23,400-23,450 range could trigger additional short covering, potentially pushing Nifty towards 23700, with support at 23150.

Global Market Impact

US stocks declined on Thursday following a previous day's rally, as investors analyzed corporate earnings reports and economic indicators to assess potential Federal Reserve interest rate reductions. Asian equities also declined in early trading sessions amidst US market uncertainty, with investors eagerly awaiting Chinese economic data, including fourth-quarter growth figures, scheduled for Friday.

Commodities and Investments

Gold prices strengthened on Friday, advancing towards a third consecutive weekly gain after US economic data suggested potential Federal Reserve interest rate reductions this year. On the investment front, foreign portfolio investors registered net sales of Rs 4,341 crore on Friday, while domestic institutional investors purchased shares worth Rs 2,928 crore. The net short position of FIIs increased from Rs 2.94 lakh crore on Wednesday to Rs 2.97 lakh crore on Thursday.