Indian market nosedived on Friday with Sensex closing below the 55,000-mark amid a sell-off in global markets. Unabated foreign fund outflows and firm crude oil prices also weighed on sentiment. Sensex ended 866 points lower at 54,835 and Nifty lost 271 points to 16,411 in the last trading session of this week.
Bajaj Finance, Axis Bank, Bajaj Finserv, Nestle, Wipro, HDFC, Infosys, HDFC Bank and UltraTech Cement were the top Sensex losers, falling up to 4.91 per cent.
Tech Mahindra, PowerGrid, ITC, SBI and NTPC were among the top Sensex gainers, rising up to 2.21 percent.
Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities said, "Central bank actions kept domestic and global markets under pressure this week. In line with global markets, Sensex and Nifty index saw profit booking this week and was down by 4 per cent. Sustained high inflation continue to drive monetary tightening measures from Central Banks across different countries. This week markets reacted to interest rate increase by Central Banks like US Federal Reserve, Bank of England and RBI. Amid rising interest rate, elevated crude oil price and high inflation, the markets will likely remain volatile. Further, stock specific action can be expected based on Q4 results and management commentary."
Investor wealth declined by Rs 4.32 lakh crore to Rs 255.32 lakh crore today against Rs 259.64 lakh crore in the previous session. Of 30 Sensex stocks, 25 ended in the red.
The market breadth was negative with 835 shares trading higher against 2,519 stocks falling in the red. 106 shares were unchanged. BSE mid-cap and small-cap indices crashed 485 points and 581 points, respectively.
Vinod Nair, Head of Research at Geojit Financial Services said, "A steep crash in the US stocks as the market evaluated the need for a higher rate hike to tame elevated inflation levels wounded global markets with heavy selling. The Bank of England while raising its interest rates, warned about a possible risk of recession, aggravating investor fears. This period of volatility is the time for smart money to look for opportunities with buy-in-dip as the strategy with a focus on sectors that are expected to be least impacted by inflation and yield rise."
Consumer durables and IT stocks were the top sectoral losers with their BSE indices, plummeting 962 points and 722 points, respectively.
Persistent foreign capital outflows dented investor sentiment, forex traders said. Foreign institutional investors continued their selling spree, offloading shares worth Rs 2,074 crore on Thursday, according to stock exchange data.
Deepak Jasani, Head of Retail Research, HDFC Securities said, "The US dollar hit 20-year highs and world stocks fell towards their lowest in over a year on Friday as markets expected more US interest rate rises, while Asian stocks fell on worries about the hit to growth from China's zero-COVID policy. MSCI's world equity index fell 0.52%, towards its lowest since Feb 2021. A closely watched US jobs report due later on Friday could strengthen the case for aggressive tightening. 16133 on the Nifty remains the next support after a week of loss while 16824 remains a resistance."
Meanwhile, the rupee slumped 57 paise to close at 76.92 against the US dollar on Friday, hit by a strong American currency overseas and firm crude oil prices. During the trading session, the rupee witnessed an intra-day high of 76.56 and a low of 76.96.
Elsewhere in Asia, markets in Hong Kong, Shanghai, and Korea settled significantly lower, while Tokyo ended higher. Exchanges in Europe were trading in the negative zone in the afternoon session. Stock exchanges in the US had fallen sharply in overnight trade on Thursday. The S&P 500 fell 153.30 points to 4,146.87, while the Nasdaq slid 647.16 points to 12,317.69.
The Dow briefly skidded 1,375 points before closing down 1,063.09 points, or 3.1 per cent, to 32,997.97. Meanwhile, international oil benchmark Brent crude jumped 2.20 per cent to $113.3 per barrel.
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