Analysts expect volatility to persist in the near term amid global macro uncertainties, elevated valuations, and policy expectations from the upcoming trade negotiations with the US. Investors are advised to remain cautious and focus on fundamentally strong stocks.
BIZ DESK
India’s Domestic equity markets ended sharply lower on Friday, marking the third straight week of losses, as heavy selling in IT and banking stocks and investor caution ahead of upcoming US-India trade talks weighed on sentiment.
The BSE Sensex plunged 503 points to close at 81,757, while the Nifty50 dropped 143 points, settling at 24,968, breaching the crucial psychological level of 25,000. The broader market too witnessed profit booking, with the BSE MidCap and SmallCap indices falling over 0.6% each.
Within the Sensex pack, 23 of the 30 stocks ended in the red. Axis Bank was the top laggard, crashing over 5.2%, followed by Bharat Electronics Ltd (down 2.3%) and Bharti Airtel (down 1.5%). On the upside, Bajaj Finance gained 1.9%, Tata Steel rose 1.66%, and ICICI Bank added 0.5%.
Sectorally, the decline was broad-based. Out of 21 major BSE sectors, 18 closed in the red. The worst performers included Capital Goods (-1.5%), Bankex (-1.3%), and Industrials (-1.1%). Only the Metal index (+0.4%), Focused IT (+0.05%), and Services (+0.02%) managed to stay afloat.
Market breadth remained weak, with 2,389 stocks declining, 1,660 advancing, and 159 remaining unchanged on the BSE. At the NSE, 69 companies touched 52-week highs, while 19 stocks hit 52-week lows.
Analysts expect volatility to persist in the near term amid global macro uncertainties, elevated valuations, and policy expectations from the upcoming trade negotiations with the US. Investors are advised to remain cautious and focus on fundamentally strong stocks.
Sectoral Trends
The selling pressure was felt across almost all sectors, with 18 of the 21 sectoral indices on the BSE closing lower. The worst-hit sectors were Capital Goods, which dipped 1.5%, Bankex, which slipped over 1.3%, and Industrials, which fell by more than 1%.
Among the few sectors that ended in positive territory, the gains were modest. Metal surged over 0.4%, while Focused IT and Services saw slight increases of 0.05% and 0.02%, respectively.
The overall market breadth at the BSE was overwhelmingly negative, as shares of 2,389 companies declined compared to the 1,660 that advanced. Furthermore, on the National Stock Exchange (NSE), while 69 companies hit a new 52-week high, a notable 19 companies fell to a new 52-week low, highlighting the pressure on specific stocks despite the overall market movements.