Sensex, Nifty Open Flat as FMCG Losses Offset Metal Gains

Benchmark Indian indices opened flat on Friday, with gains in metal stocks offset by losses in FMCG and pharma sectors, as optimism over a possible India-US trade deal faded.

The S&P BSE Sensex dropped 96.63 points to 84,459.77, while the NSE Nifty50 declined 24.20 points to 25,866.45 at 9:28 am. Market participants noted that the rally seen earlier in the week, driven by expectations of a trade deal, lost momentum due to lack of confirmation from the Indian side.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, said, “The positive news regarding the trade deal was not confirmed by the Indian side. This dampened the spirits of the bulls who couldn’t force further short covering. However, the commerce minister’s statement about working towards a fair and equitable agreement with the US indicates that the ongoing rally is likely to remain intact.”

Among early gainers, Tata Steel led with a 1.15% rise, followed by ICICI Bank up 0.88%, Bharat Electronics Ltd (BEL) up 0.79%, Mahindra & Mahindra gaining 0.59%, and Bharti Airtel up 0.44%.

Despite these gains, several heavyweights weighed on the market. Hindustan Unilever fell 3.72%, Kotak Mahindra Bank declined 2.02%, Adani Ports slipped 0.83%, Axis Bank dropped 0.75%, and Titan lost 0.73%, reflecting weak broader sentiment.

Vijayakumar added that global factors, including potential US-China trade talks, could also affect market sentiment. “A US-China trade deal is expected during the upcoming summit. China holds significant leverage with rare earth minerals, which limits the US’s bargaining power. Consequently, a strong short-covering rally, which could have pushed the market significantly higher, is unlikely,” he said.

Investors are advised to monitor sector-specific trends, as metal stocks continue to show resilience while FMCG and pharma struggle. Analysts also emphasized consulting qualified brokers or financial advisors before making investment decisions, given the current market volatility and mixed signals from trade developments.

With global trade negotiations and domestic corporate performance influencing early market trends, investors are taking a cautious approach. While metal gains offered some support, weakness in heavyweight stocks highlighted the need for balanced portfolio strategies in the current trading environment.