The Indian stock markets witnessed a sharp decline on Friday, with the benchmark indices falling over 1 per cent amid weak global cues and broad-based selling pressure. The BSE Sensex plummeted 1,017.23 points or 1.24 per cent to close at 81,183.93, while the Nifty 50 dropped 292.95 points or 1.17 per cent to end at 24,852.15.
The day’s trading session began on a flat note, with the Sensex opening at 82,171.08 and the Nifty at 25,093.70. However, selling pressure intensified throughout the day, leading to significant losses across sectors.
Banking and energy stocks bore the brunt of the sell-off, with State Bank of India (SBI) emerging the top loser on the Nifty, plunging 4.26 per cent. Other major losers included BPCL (-2.34 per cent), ICICI Bank (-2.14 per cent), NTPC (-2.05 per cent), and HCL Tech (-2.04 per cent).
Only a handful of stocks managed to buck the trend, with Bajaj Finance leading the gainers, up 0.97 per cent. Asian Paints (0.87 per cent), JSW Steel (0.60 per cent), LTIMindtree (0.36 per cent), and Nestle India (0.20 per cent) were among the other top performers.
The market breadth was decidedly negative, with 2,530 stocks declining, compared to 1,413 advances on the BSE. The session saw 289 stocks hitting their 52-week highs, while 36 touched their 52-week lows.
Ajit Mishra, SVP of Research at Religare Broking Ltd, said, “On Friday, markets came under pressure and closed over a per cent lower, weighed down by weak global cues. After a flat start, the Nifty gradually declined throughout the day, breaking multiple support levels to end at 24,852.15. The sell-off was broad-based, with the banking and energy sectors taking the biggest hit.”
Dr. Joseph Thomas, Head of Research at Emkay Wealth Management, attributed the decline to profit-booking in overheated segments, noting, “The overheated segments of the markets have seen some profit booking and may be an indicator that earnings would incrementally dictate price movements.”
The recent weakness in US markets has stalled momentum in Indian equities, causing participants to become cautious ahead of upcoming US jobs data. With the Nifty slipping below the crucial 20-day exponential moving average (DEMA), further downside is likely, with key support around 24,500 at the 50 DEMA.
Crude oil prices saw a significant correction, with Brent crude now trading close to $73 per barrel. This development could have implications for energy and oil-related stocks in the coming sessions.
Amol Athawale, VP-Technical Research at Kotak Securities, provided a technical perspective, stating, “Technically, on weekly charts, the index has formed a long bearish candle and on intraday charts, it is holding a lower top formation, which supports further correction from the current levels.”
As global economic data and central bank decisions continue to influence market sentiment, investors are advised to remain cautious and maintain strict stop losses on existing trades.
