Markets snap 2-day winning run, tank nearly 1% on selling pressure
Mumbai: Equity benchmark indices Sensex and Nifty buckled under selling pressure to settle nearly 1 per cent lower on Friday as investors pared exposure to bank and IT stocks ahead of the earnings season starting next week.
Despite a positive start, the 30-share BSE Sensex tumbled 720.60 points or 0.90 per cent to close at 79,223.11. During the day, it slumped 833.98 points or 1.04 per cent to 79,109.73.
The NSE Nifty tanked 183.90 points or 0.76 per cent to 24,004.75.
On a weekly basis, the BSE benchmark jumped 524.04 points or 0.66 per cent, and the Nifty climbed 191.35 points or 0.80 per cent.
From the Sensex pack, Zomato, HDFC Bank, Tech Mahindra, Adani Ports, TCS, ICICI Bank, Sun Pharma, Larsen & Toubro, HCL Tech and ITC were the major laggards.
On the other hand, Tata Motors, Nestle, Titan, Hindustan Unilever and Reliance Industries were among the gainers.
“Despite the short recovery in the past two sessions, markets lost the momentum as there is still a lot of pessimism due to slowing growth, higher domestic valuations, foreign fund outflows, and uncertainty over US trade policies post Trump’s resumption as the country’s president. Hence, markets may see bouts of correction, and investors will continue to maintain caution while keeping an eye on global developments,” Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd, said.
The BSE midcap gauge fell 0.33 per cent, and smallcap index dipped 0.02 per cent.
Among sectoral indices, BSE Focused IT declined 1.42 per cent, IT (1.31 per cent), tech (1.13 per cent), bankex (1.07 per cent), capital goods (1.06 per cent) and financial services (0.87 per cent). BSE energy, telecom, consumer durables, utilities, metal and oil & gas were the gainers.
FIIs turned buyers on Thursday after remaining net sellers in the recent past. They bought equities worth Rs 1,506.75 crore, according to exchange data.
Global oil benchmark Brent crude declined 0.43 per cent to $75.60 a barrel.
In the previous session, the BSE benchmark jumped 1,436.30 points or 1.83 per cent — its best single-day gain in more than a month — to settle at 79,943.71. The Nifty surged 445.75 points or 1.88 per cent to 24,188.65.
