• The Indian stock market opened flat on Friday, with buying seen in auto, media, and energy sectors.
• Despite a decline in the Sensex and Nifty, 992 stocks traded in green on the National Stock Exchange.
• Foreign institutional investors' buying trend reversed, with large caps under pressure due to selling.
• Despite global economic shifts, experts predict a recovery led by large caps, reflecting the market's resilience.

The Indian stock market commenced on a flat note on Friday, with the Nifty hovering above 23,900. This comes as the hawkish stance from the US Federal Reserve begins to fade. The market saw buying in auto, media, and energy sectors, indicating a shift in investor sentiment. Despite the initial negative reaction to the US Fed's comments, experts suggest that this will not have a long-term impact. They predict a large cap-led recovery in the near future.

As of 9:32 am, the Sensex was trading at 79,122.61, a decline of 95.44 points or 0.12 per cent, while the Nifty was at 23,932.10, down by 19.60 points or 0.08 per cent. The overall market trend remained positive, with 992 stocks trading in green on the National Stock Exchange (NSE), while 694 stocks were in red. However, the Nifty Bank was down 153.10 points or 0.30 per cent at 51,422.60.

Sectoral Trends and Top Performers

The Nifty Midcap 100 index was trading at 58,763.70, gaining 207.45 points or 0.35 per cent, and the Nifty Smallcap 100 index was at 19,227.60, adding 94.50 points or 0.49 per cent. On the sectoral front, selling was observed in PSU Bank, Financial service, FMCG, and metal sectors. In the Sensex pack, Axis Bank, ITC, JSW Steel, Power Grid, M&M, Ultra Tech Cement, and L&T were the top losers. On the other hand, TCS, Infosys, Tata Motors, Bharti Airtel, HCL Tech, Tech Mahindra, and Kotak Mahindra Bank emerged as the top gainers.

Internationally, the Dow Jones closed at 42,342.24, gaining 0.04 per cent. The S&P 500 dropped 0.09 per cent to 5,867.10, and the Nasdaq declined 0.10 per cent to close at 19,372.77. In the Asian markets, Hong Kong, China, and Japan were trading in green, while Jakarta, Bangkok, and Seoul were in red.

FII Strategy and Market Predictions

Experts have noted a reversal in the buying trend of foreign institutional investors (FIIs) that was witnessed in early December. This week's selling reached Rs 12,229 crore, reflecting a change in FII strategy. This shift is also visible in market trends, with large caps, particularly financials, coming under pressure due to FII selling. On December 19, FIIs sold equities worth Rs 4,224.92 crore, while domestic institutional investors bought equities worth Rs 3,943.24 crore.

However, experts believe this trend is unlikely to sustain. They suggest that retail investors can adopt a strategy opposite to the FII strategy, predicting that quality large caps will soon bounce back. Historically, the Indian stock market has shown resilience in the face of global economic shifts. For instance, during the 2008 financial crisis, the market initially plummeted but eventually recovered, demonstrating its robustness.