Indian stocks expected to pull back after recent rally
A global market selloff and cautious investor sentiment following US election results may trigger profit-booking in domestic markets.
Indian equity markets are expected to end their recent winning streak on Friday, according to a report by Mint. The Nifty 50 and BSE Sensex have both risen for six consecutive sessions, with Thursday marking their strongest performance in seven months.
The potential decline follows a global market downturn. GIFT Nifty futures were trading at 24,460 at 7:49 a.m. IST, suggesting a lower opening for the Nifty 50, which ended Thursday at 24,536.6.
On Thursday, the Nifty 50 and BSE Sensex rose 2.4 per cent and 2.6 per cent respectively. This rally was supported by falling Brent crude prices and significant foreign fund inflows, with foreign institutional investors purchasing stocks worth approximately Rs 150 billion ($1.6 billion).
Hariselvan Radhakrishnan, founder and CEO of HST Wealth, said the indicated decline might be contained because lower crude prices and India's limited direct exposure to the AI-hardware trade could provide insulation.
Global sentiment turned risk-averse after US technology stocks fell, including a 5.5 per cent drop in the Nasdaq. Asian markets also moved lower on Friday, with South Korea's Kospi falling 8 per cent and Japan's Nikkei dropping 5 per cent.