Indian benchmark indices continued their downward trajectory on Friday morning, with both the Sensex and Nifty opening lower amid ongoing concerns over foreign fund outflows and potential US trade policy changes. The market sentiment remained cautious as investors grappled with persistent institutional selling pressure.

Market Performance Overview

The early trading session reflected the continued weakness in Indian equities. Key market movements included:

The decline followed Thursday's significant sell-off, when the Sensex tanked 780.18 points (0.92%) and the Nifty tumbled 263.90 points (1.01%). This extended selling pressure has resulted in substantial losses over recent sessions.

Four-Day Decline Trend

The market's recent performance highlights the severity of the current correction. Over the past four trading days, both indices have experienced notable declines:

Stock-Specific Movements

Among the 30 Sensex constituents, the session saw mixed performance with several major stocks leading the decline. The biggest laggards included ICICI Bank, Tata Motors Passenger Vehicles, NTPC, Adani Ports, Sun Pharma, and Trent. However, some stocks provided support to the indices, with Eternal, HCL Tech, Bharat Electronics, and Asian Paints emerging as notable gainers.

Institutional Investment Flows

Foreign and domestic institutional investor activity continued to show contrasting patterns on Thursday:

The data shows domestic investors partially offsetting foreign selling pressure, providing some stability to the market during the volatile period.

Market Outlook and Concerns

According to Ponmudi R, CEO of Enrich Money, Indian equity markets entered the session with a cautious undertone following the previous day's sharp sell-off. Risk appetite remained subdued due to global trade-related uncertainties continuing to weigh on investor sentiment. Persistent concerns over potential US tariff actions linked to India's Russian oil imports have kept sentiment fragile, while the lack of visible progress in US-India trade discussions reinforced institutional caution, particularly among foreign investors.

Global Market Context

Asian markets showed mixed performance during the session, with South Korea's Kospi index, Japan's Nikkei 225 index, and Shanghai's SSE Composite index trading higher, while Hong Kong's Hang Seng index quoted lower. US markets had ended on a mixed note on Thursday. Meanwhile, Brent crude, the global oil benchmark, climbed 0.53% to $62.32 per barrel, adding to the complex global market environment.

Indian equity markets opened on a positive note but quickly surrendered early gains, with both benchmark indices turning red within minutes of the opening bell. Investor sentiment remained cautious as markets awaited a crucial US Supreme Court ruling on the legality of tariffs that have weighed on trading sessions recently.

Market Performance

The key indices showed mixed opening but deteriorated as trading progressed:

Both indices had opened higher, briefly snapping a four-session losing streak before turning negative around 9:27 a.m. The Sensex and Nifty have declined 1.80% and 1.70% respectively over the past four sessions.

Stock-Specific Movements

Among the 30-stock Sensex constituents, the session saw clear divergence between sectors:

Top Decliners:

• ICICI Bank
• Adani Ports
• NTPC
• Sun Pharma
• UltraTech Cement

These stocks fell between 0.50% and 1.50% during the session.

Top Gainers:

• Eternal (leading gains)
• Bharat Electronics
• HCL Technologies
• Asian Paints
• Power Grid

The gainers rose between 1.00% and 2.00%. Mazagon Dock Shipbuilders climbed 3.00% following reports of India and Germany moving closer to finalizing a submarine-manufacturing agreement valued at least $8.00 billion.

Broader Market Trends

Broader market indices remained under pressure, reflecting the cautious sentiment across market segments:

Institutional Activity

Foreign and domestic institutional investors showed contrasting behavior:

Currency Movement

The Indian rupee opened at 89.87 against the US dollar, gaining 0.16% from its previous close. The dollar index tracked at 98.92, hovering near a one-month high.

Global Market Context

Asian markets showed mixed performance as investors awaited key developments. Japan's Nikkei rose 0.80%, supported by strong earnings from Fast Retailing. MSCI's broad Asia-Pacific index outside Japan slipped 0.30% in early trading. Oil prices advanced for the second straight session, with Brent crude futures rising 0.70% to $62.43 per barrel and US West Texas Intermediate crude climbing 0.70% to $58.15.