Mumbai: Indian equity markets opened on a subdued note on Friday as investors stayed cautious in thin year end trading, with limited global cues and profit taking near record levels weighing on sentiment.
Benchmark indices slipped marginally in early trade, reflecting low volumes as many domestic and overseas investors remained on holiday. Market participants avoided large bets, preferring to wait for fresh triggers such as quarterly earnings and policy signals in the new year.
Heavyweight stocks in banking and information technology put mild pressure on the market, while select metal and consumer stocks showed some resilience. Traders said the absence of strong buying interest was typical for the last trading sessions of the year.
Foreign investor activity remained muted, adding to the lack of momentum. Analysts noted that portfolio investors have been cautious in recent months, focusing on risk management rather than aggressive positioning.
The broader market also moved in a narrow range, with most sectoral indices trading mixed. Market experts expect Indian shares to remain range bound in the coming days, with clearer direction likely only after trading volumes return and earnings season begins.
Despite the soft start, sentiment around the longer term outlook remains stable, supported by expectations of steady economic growth and improving corporate performance in the months ahead.