Indian stocks traded lower in early trade on Friday, with major indices the Nifty and the Sensex falling due to weak global market trends and rising crude oil prices. The 30-share BSE Sensex fell 320.63 points to 65,308.61, while the Nifty declined 106 points to 19,518.70. Hindustan Unilever, one of the Sensex firms, reported a slight decline in consolidated net profit, causing its stock to trade over 1% lower. Other major laggards included HCL Technologies, ITC, Power Grid, Bajaj Finance, UltraTech Cement, and Asian Paints. On the other hand, Nestle, Tata Motors, Kotak Mahindra Bank, and IndusInd Bank were among the gainers.
The slip in equity markets can be attributed to various factors, according to Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He pointed out that the US 10-year yield hovering around 5% continues to be a challenge, while the volatile situation in West Asia could pose additional near-term difficulties. Additionally, foreign institutional investors offloaded equities worth Rs 1,093.47 crore on Thursday, putting pressure on banking stocks.
Meanwhile, Asian markets such as Seoul, Tokyo, Shanghai, and Hong Kong were also trading in the negative territory. In the US, the markets ended lower on Thursday. The global oil benchmark, Brent crude, saw a 0.90% increase, reaching USD 93.21 per barrel.
Overall, the Indian stock market faced downward pressure, primarily influenced global factors and foreign fund outflows. However, this presents an opportunity for domestic investors to acquire stocks at fair valuations.