Sensex, Nifty Slip as Weak Q2 Earnings Dampen Investor Sentiment: It was a difficult day for Indian equity markets. Sensex declined by 259.58 points (0.36%) and ended at 71,423.65, while the Nifty declined by 50.60 points (0.23%) and settled at 21,571.80. Some early upside was observed as markets turned around in response to mixed Q2 corporate earnings and persistent global economic worries.
Market Movers — Pivotal Reasons for the Market Movement Underwhelming Q2 Results.
Due to the September quarterly of many companies posting below-par earnings, worries mounted that corporate profitability was falling short. A sluggish net profit recovery came short of some analysts’ expectations, weighing on the market outlook.
Sectoral Performance:
Major losers on Friday were IT and FMCG stocks, while banking and financial services provided some support. Mid-cap and small-cap indices also held their ground even as broader markets were volatile.
Read More: Foreign Portfolio Investors Offloading Indian Equities
Local and Global Challenges
High inflation, continued geopolitical uncertainties, and FPI outflows have kept investors on high alert. Alex Mathews, Head of Research at Geojit Financial Services, said the FPI exits have continued on a sustained basis, contributing to the “sell India, buy China” trend and putting further pressure on domestic equities.
Short-Term Outlook
Experts from the market believe that Nifty can find support at about 24,000, but resistance levels are closer to as high as 24,500-25,000. Volatility will continue until clear directional signals develop.
The broader market may be resilient, but analysts and portfolio managers equally continue to recommend sectoral plays or an overall focus on strong companies for getting the uncertainty of Q3.
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