Indian markets open with sharp decline led by IT sell-off; Global cues remain mixed

New Delhi [India], June 19 (ANI): Indian markets open with sharp decline on Friday, which experts have attributed to a strong sell-off in technology equities and volatile global cues that snapped a multi-day winning streak.
The BSE Sensex fell sharply by 557.12 points, or 0.72 per cent, to stand at 76,852.86 points. Similarly, the NSE NIFTY 50 dropped 176.80 points, representing a decline of 0.73 per cent, to settle at 23,991.20 points during the opening trade session.
The sudden reversal came after five consecutive sessions of positive movement across domestic indices. Market indicators reflected a cautious opening, even as regional Asian markets showcased a mixed trend.
While regional indices like the Japanese Nikkei 225 recorded a minor gain of 0.19 per cent, Hong Kong's Hang Seng index declined by 1.62 per cent and South Korea's KOSPI dropped 0.86 per cent. Meanwhile, the GIFT NIFTY traded relatively flat with a minor gain of 2.00 points to touch 23,991.00 points.
Commenting on the market trajectory, Banking and Market expert Ajay Bagga noted the underlying triggers for the correction. "After five days of an upmove, Indian markets were sharply down in futures trading last night due to a selloff in IT stocks/ADRs," Bagga said.
He further pointed out that early morning adjustments cushioned some of the initial losses seen during the extended hours. "There has been a nearly 100 points recovery this morning. Banks should continue to lead the Indian markets higher," Bagga added.
The commodity segment provided some breathing room for the domestic macroeconomic landscape, driven by notable shifts in energy and precious metal trades. Brent crude slipped 0.88 per cent to USD 79.15 US per barrel, while crude oil dropped 0.72 per cent to USD 76.05 US dollars per barrel. Gold prices also declined by 1.18 per cent to stand at USD 4,160.26.
Highlighting the impact of these commodity fluctuations on domestic landscapes, Bagga said, "India's crude oil basket fell to USD 78 on June 17 which makes OMCs profitable on petrol and diesel sales."
On the global front, Wall Street displayed a different dynamic during its previous closing hours, though US futures remained marginally soft on Friday morning with Dow Jones Futures down 0.20 per cent at 51,461.65 points. In contrast, the S&P 500 closed higher by 1.08 per cent at 7,500.58 points, and the Nasdaq added 1.91 per cent to hit 26,517.93 points.
Analyzing the international trend, Bagga explained that overseas investors successfully absorbed recent macroeconomic policy assessments from central authorities.
"US markets staged a smart upmove as Fed hawkishness was digested and the signing of an interim agreement was welcomed with oil prices staying below USD 80," Bagga concluded.
Shrikant Chouhan Head Equity Research Kotak Securities pointed that for trend-following traders, 24,000/77,000 will act as key support zones. As long as the market trades above these levels, the uptrend wave is likely to continue.
"Upon a move higher, it could revisit 24,300-24,375/77,800-78,000. On the other hand, if the market breaks below 24,000/77,000, it will gradually decline towards 23,900-23,800/76,700-76,400. It is recommended to take long positions between 24,100 and 24,000 levels, with a stop loss at 23,900," he said. (ANI)