Key facts
- Indian stock markets closed lower on Friday, marking the second consecutive weekly decline.
- Investor sentiment turned cautious following the Reserve Bank of India's hawkish monetary policy announcement.
- Foreign institutional investors continued to sell Indian equities.
- Domestic institutional investors provided support to the market.
- Analysts anticipate a consolidation phase for the Nifty.
- IT stocks are underperforming.
Indian stock markets, including the Sensex and Nifty, concluded the trading week on a downward note, extending their losing streak to a second consecutive week. The cautious sentiment among investors was largely attributed to the Reserve Bank of India's hawkish monetary policy announcement. Market analysts suggest that the benchmark Nifty index might experience a period of range-bound trading in the immediate future, with key support at 23,100-23,050 and resistance at 23,550-23,600. The selling pressure from foreign institutional investors persisted, although their actions were counterbalanced by buying interest from domestic institutional investors, who provided a degree of support to the market. Bank Nifty shows resilience, while IT stocks are underperforming. Indian stock markets may remain under pressure this week amid persistent FII selling, weak global cues, rising geopolitical tensions in West Asia and elevated crude oil prices. While RBI's policy measures and steps to attract foreign capital could support sentiment, investors will closely track monsoon progress, inflation concerns, global market trends and institutional flows for further market direction.