Mumbai, Nov 6: Indian equity markets began Friday’s trading session on a cautious note, with benchmark indices Sensex and Nifty moving lower amid weak global cues and heavy selling across international markets. The decline reflected growing investor concerns following a sharp correction in US technology stocks and losses across Asian markets.
The BSE Sensex fell nearly 300 points, or 0.37 per cent, to 79,016.05 in early trade. The NSE Nifty declined 148.55 points, or 0.60 per cent, to 24,388.05, touching an intraday low as selling pressure spread across several sectors.
Metal stocks faced the steepest pressure, with the Nifty Metal index falling around 2 per cent. Realty stocks also remained under pressure, declining 1.56 per cent. Chemicals, oil and gas, consumer durables, PSU banks, FMCG and automobile stocks traded lower, with losses extending up to 1.34 per cent.
However, the technology sector moved against the broader market trend. The Nifty IT index gained nearly 2 per cent, while mid- and small-cap IT, telecom, private banking and media stocks also traded in positive territory.
Global Technology Sell-Off Shapes Market Sentiment
The weakness in domestic equities came after a sharp sell-off in US markets, where the Nasdaq plunged 5.6 per cent amid concerns over a potential slowdown in data centre investments. The correction has raised questions about the sustainability of the artificial intelligence-led investment cycle and its influence on global technology valuations.
However, the changing global investment environment could also create opportunities for Indian markets. A moderation in enthusiasm around expensive technology stocks may encourage investors to reassess opportunities in other sectors and markets, including India.
Foreign Investor Buying Provides Support
Despite the weak opening, continued foreign institutional investor (FII) buying has offered some support to domestic equities. Foreign investors purchased shares worth ₹35,781 crore over the previous five trading sessions, indicating renewed interest in Indian stocks.
On Thursday alone, FIIs recorded net equity purchases of ₹14,974 crore, marking their fifth consecutive session of buying. In contrast, domestic institutional investors (DIIs) remained net sellers, with outflows of ₹10,444 crore.
The recent market recovery has also received support from better-than-expected corporate earnings and renewed interest in large-cap companies. Relatively attractive valuations in several established businesses have helped bring investors back into the market.
Rising Crude Oil Prices Remain a Concern
Another factor requiring attention is the upward movement in international crude oil prices. Brent crude rose nearly 2 per cent to $100.31 per barrel, while US West Texas Intermediate (WTI) gained more than 1 per cent to reach $91.91 per barrel.
Higher crude prices could increase India’s import expenses, put pressure on the rupee and raise operating costs for sectors that depend heavily on fuel and energy. This may also complicate the inflation outlook and influence corporate profit margins.
Market Outlook
The early decline in Sensex and Nifty highlights how closely domestic equities remain connected to global market developments. While international technology stocks and rising crude prices are creating short-term uncertainty, sustained foreign investor participation and improving corporate earnings provide important support.
For investors, the immediate focus will remain on global market movements, crude oil prices, institutional investment flows and upcoming corporate earnings. The ability of domestic markets to absorb external pressure while maintaining their recent recovery will be important in determining the direction of trading in the coming sessions.