Mumbai: Indian stock markets opened lower on Friday, weighed down by reports that the United States may launch a fresh investigation into China over their 2020 trade deal. Rising oil prices, fuelled by new US sanctions on Russia, also dampened investor sentiment.

At the opening bell, the Sensex fell 113 points, or 0.13 per cent, to 84,443, while the Nifty slipped 27 points, or 0.10 per cent, to 25,866.

Analysts said the Nifty continues to show a sideways to bullish bias, holding above key support levels at 25,700 and 25,750.

"Immediate resistance is placed at 25,950, with further upside targets at 26,000 and 26,100. The overall trend remains bullish, provided the index sustains above 25,780 on a closing basis," they added.

Among the top laggards were heavyweights such as Hindustan Unilever, Kotak Bank, Axis Bank, Titan, Power Grid, ITC, NTPC, Tech Mahindra, and Maruti Suzuki, which fell up to 3.5 per cent.

On the upside, ICICI Bank, Tata Steel, Bharat Electronics (BEL), Mahindra & Mahindra, Bharti Airtel, HDFC Bank, and State Bank of India were trading higher, helping limit overall losses.

In the broader market, buying interest continued, with the Nifty MidCap index rising 0.05 per cent and the Nifty SmallCap index gaining 0.09 per cent.

Sector-wise, metal stocks led gains, with the Nifty Metal index up 1 per cent, followed by modest rises in the Realty and Financial Services indices. FMCG stocks faced pressure, however, with the Nifty FMCG index falling 1.4 per cent, making it the biggest sectoral loser of the day.

Market experts advised traders to exercise caution amid heightened volatility and mixed signals.

"Given the current setup of heightened volatility and mixed market signals, traders are advised to adopt a cautious 'buy-on-dips," analysts said. Booking partial profits during rallies and maintaining a fight trailing stop-losses will be key to managing risk effectively, as per the analysts.

IANS