After opening positive, market indices turned bearish and ended the week on a negative note on Friday, amid weak global markets. Extending weakness for the third day, Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642. Yesterday, Sensex ended 172 points lower at 39,749 and Nifty fell 58 points to 11,670.
During the week, Sensex fell by 135 points or 0.34% and Nifty dropped by 28 points or 0.24%.
Meanwhile, September quarterly earnings announcements by Reliance Industries, Deepak Nitrite, Dixon Technologies, Indian Oil Corporation, DLF, IndusInd Bank, Jindal Steel, Just Dial also set the tone for the stock market movement today.
European stocks turned positive after the European Central Bank left its policy unchanged this time around and committed to taking new action in December in the form of more bond purchases or cheap credit for banks, in a move to contain the growing fallout from the second wave of coronavirus infections.
However, gains were marginal as French and German leaders announced new lockdown measures to combat rising infections.
Worldwide, there were 453 lakh confirmed cases and 11.86 lakh deaths from COVID-19 outbreak. In India, coronavirus cases neared 80-lakh with total deaths standing at 1.21 lakh. Worries of soaring coronavirus cases in the US and Europe have kept investor sentiments negative.
Asian stocks opened higher after a rebound in US equities. Although, indices gave up gains as coronavirus cases continued to surge in the West, raising worries over its potential impact on the global economy.
With US presidential elections less than a week away, dwindling hopes for any US economic relief package also kept sentiments negative.
Aamar Deo Singh-Head Advisory, Angel Broking said," Markets witnessed a volatile session today, ending the day with minor losses for the benchmark index Nifty 50 @ 116423, down 28 points. During the 2nd half of the session, there was a recovery from the lows of the day, with advances outnumbering declines marginally. Nifty continues to witness selling pressure on the back of weak global cues, with support seen around 11450-11500 zone whereas resistance is seen around 11750-11800 levels.
S Ranganathan, Head of Research at LKP Securities said," Markets were volatile today as reflected in the VIX which has risen close to 300bps over the last few sessions. Autos witnessed profit booking today although a late comeback by RIL ahead of its earnings today evening helped indices gain some lost ground in afternoon trade".
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking said," Since the last few days, almost all chartists are keeping a close eye on 11660 and has been considered a strong as well as crucial support. We still remain hopeful but the real conviction will now come only after Nifty surpassing the intermediate hurdle of 11770 - 11800 and if this has to happen, globally we need to have some respite and for us, the banking should resume the upward trajectory. For the coming session, the intraday support is at 11600."
Forex and money markets remained shut on Friday on account of 'Id-E-Milad'. On Thursday, the rupee fell for the second straight session and ended another 23 paise lower at 74.10 per US dollar.