Indian equities opened cautiously on Friday, with tech shares rallying despite a backdrop of rising crude oil prices and global risk concerns, as analysts monitor key support levels and sectoral performance.
Indian equities opened on a cautious note on Friday, with the Nifty 50 edging down 29.65 points to 24,606.35 and the Sensex slipping 242.14 points to 78,712.62 in early trade. Technology shares provided the main support, led by gains in Tech Mahindra, TCS, HCL Technologies and Infosys, even as financials and consumer names came under pressure.
The session’s tone was shaped by a renewed rise in crude oil prices, which unsettled investors already wary of global risk. Market strategists said the move in oil lifted US Treasury yields and brought inflation worries back into focus, a development that tends to weigh on growth-heavy sectors. That backdrop is particularly relevant for India, where a softer oil trend has recently helped sentiment; earlier this month, falling crude had helped power a strong rebound in IT shares and a broader market advance.
Foreign institutional investors were modest net sellers in the previous session, while domestic institutions stepped in with heavy buying. Analysts said the Nifty’s chart still points to consolidation rather than a decisive break, with 24,600 emerging as an important near-term support and 24,700 as the level that could open the way towards higher targets. One strategist described the market’s daily candle as small-bodied, a sign that buyers and sellers were still evenly matched.
Overseas cues were mixed. Wall Street closed lower overnight as investors trimmed risk, while Asian markets also softened after early strength faded. In India, earnings have so far painted a divided picture: financials, autos, pharmaceuticals and telecoms have generally delivered solid growth, while IT remains under pressure from slower demand and concerns about the effect of artificial intelligence on margins and hiring. Even so, the sector’s earlier July rally showed that investors are still willing to rotate back into technology when crude eases and sentiment improves.
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