Domestic markets are likely to continue its downtrend on Friday, as investors on profit booking mode. Gift Nifty, which turned volatile, at 19,770 indicates that flat-to-negative opening, as Nifty futures on Thursday closed at 19,811.
Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said: “Profit-booking was the order of the day as investors preferred to book profit after the US Fed delivered a 25 bps rate hike on Wednesday. The benchmarks ended the expiry day on an uninspiring note. Sectorally, most of the indices ended the day in red with auto index losing the most. Investors preferred to turn to safe haven Pharma index.”
The US stocks too closed in negative zone while equities in Asia-paicific region are down in early deal on Friday. Analysts said foreign portfolio investors on Thursday offloaded heavily.
According to analysts, market will remain in consolidation phase and investors will indulge in sector rotation.
Vikas Jain, Senior Research Analyst at Reliance Securities., said: The earnings season will pick up pace in the coming days. While companies in the IT sector reported decent order wins, revenue has remained under pressure due to cuts in spends by the clients. Consumption expenditure remains muted due to elevated price levels.
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, said: Market is likely to consolidate given no clarity given by the US Fed on its future course of action, leading to mixed global cues. Overall strength continues in the market, with the likelihood of consolidation at higher levels.
The July contracts on closed on negative note, analysts said rollover was positive to August series.
As the NSE will introduce new monthly contracts (October) today, market will see volatility, they added.