The benchmark indices of the Indian stock market, Sensex and Nifty 50, are anticipated to start lower on Friday, reflecting a decline in global markets following a sell-off in technology and artificial intelligence (AI) stocks. The domestic market is expected to experience volatility today with the Bihar assembly results set to be announced. On Thursday, the Indian stock market closed flat as profit-taking occurred at elevated levels, with the Sensex gaining 12.16 points or 0.01% to finish at 84,478.67, while Nifty 50 saw a marginal increase of 3.35 points or 0.01%, closing at 25,879.15.
Ajit Mishra, SVP of Research at Religare Broking Ltd, noted that while some consolidation is possible after the recent uptrend, the general outlook remains positive, bolstered by strength in key sectors like banking and IT. Traders are advised to focus on specific stocks and sector leaders such as banking, auto, and metals while implementing a cautious risk management approach due to potential market fluctuations. In Asian markets, stocks traded lower on Friday, following late losses on Wall Street due to a technology stock sell-off. Japan’s Nikkei 225 fell by 1.31%, and the Topix declined by 1.03%. South Korea’s Kospi decreased by 2.51%, while the Kosdaq dropped by 1.42%. Futures for Hong Kong’s Hang Seng Index suggested a lower opening.
The Gift Nifty was around 25,848, indicating a negative start with a discount of approximately 106 points from the prior close of Nifty futures. In the US, the stock market experienced a significant downturn on Thursday as investors adjusted their expectations regarding interest rate cuts in light of inflation concerns. The Dow Jones Industrial Average fell by 1.65% to close at 47,457.22, the S&P 500 dropped by 1.66% to finish at 6,737.49, and the Nasdaq Composite decreased by 2.29% to end at 22,870.36. The Bihar elections, conducted in two phases on November 6 and 11, achieved one of the highest voter turnouts in the state’s history.