Bourses snap 2-day rally: Sensex falls 400 pts on weak global trends, waning rate cut hopes

Mumbai: Snapping the two-day rally, benchmark indices Sensex and Nifty closed lower on Friday mainly due to weak global trends and fading hopes of a rate cut by the US Federal Reserve in December.

The 30-share BSE Sensex declined 400.76 points or 0.47 per cent to settle at 85,231.92. The 50-share NSE Nifty dropped 124 points or 0.47 per cent to 26,068.15.

Among Sensex firms, Tata Steel, HCL Tech, Bajaj Finance, Bajaj Finserv, Bharat Electronics and Eternal were the major laggards.However, Maruti, Mahindra & Mahindra, Tata Motors Passenger Vehicles and ITC were among the gainers.

Analysts said better-than-expected US non-farm payroll data dampened expectations of a December rate cut by the US Federal Reserve. Worries about a bubble in AI-related shares also dampened investor sentiment across global markets.

The BSE smallcap and midcap indices declined 1.30 per cent each.

All sectoral indices ended lower. Metal dropped 2.35 per cent, followed by realty (1.89 per cent), capital goods (1.79 per cent), commodities (1.46 per cent) and industrials (1.43 per cent).

A total of 2,898 stocks declined while 1,278 advanced and 162 remained unchanged on the BSE.

On the weekly front, the BSE benchmark jumped 669.14 points or 0.79 per cent, and the Nifty went up by 158.1 points or 0.61 per cent.

FIIs bought equities worth Rs 283.65 crore on Thursday, according to exchange data. Domestic Institutional Investors (DIIs) also bought stocks worth Rs 824.46 crore.