Sensex, Nifty open lower as financial stocks drag markets; Tata Steel up 2%

The S&P BSE Sensex declined 65.89 points to 81,545.52, while the NSE Nifty50 was down 1.35 points to 24,997.10

Benchmark stock market indices opened lower on Friday, dragged by a decline in heavyweight financial stocks.

The S&P BSE Sensex declined 65.89 points to 81,545.52, while the NSE Nifty50 was down 1.35 points to 24,997.10 as of 10:00 AM.

Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services said that the market is likely to remain volatile in the near-term alternating between FII selling and DII buying.

"Attractive valuations in other markets, particularly in Chinese stocks, will facilitate further selling by FIIs in India since Indian valuations are elevated. Concerns of earnings downgrades in H2 FY 25 render Indian valuations difficult to sustain. However, the sustained flows into the domestic mutual funds, where monthly SIPs have set a new record of Rs 24500 in September, will ensure that all FII selling will be easily absorbed by DII buying. This has been the trend in October so far," he added.