MUMBAI: Equity benchmarks Sensex and Nifty erased early gains to close with losses in a volatile session on Friday, ending their two-day winning streak as investors reduced exposure to realty, oil & gas, and healthcare stocks amid a mixed global trend.
Unabated foreign fund outflows further dampened market sentiment. After fluctuating between gains and losses, the 30-share BSE Sensex dropped 329.92 points or 0.43 per cent to settle at 76,190.46.
During the session, it fell as much as 428.63 points or 0.56 per cent to 76,091.75. The NSE Nifty declined 113.15 points or 0.49 per cent to close at 23,092.20.
On a weekly basis, the Sensex fell 428.87 points or 0.55 per cent, while the Nifty dipped 111 points or 0.47 per cent.
Markets ended weak in volatile trade amid selling in auto, oil & gas, and realty shares. A sharp appreciation in the rupee against the dollar limited the fall, but the undertone remains cautious with a weak bias.
Investors to remain cautious
“Investors are likely to remain cautious ahead of the upcoming Union Budget announcement,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Among the 30-share blue-chip pack, Mahindra & Mahindra, Zomato, Tata Motors, IndusInd Bank, Reliance Industries, Larsen & Toubro, UltraTech Cement, HDFC Bank, Adani Ports, and Bajaj Finserv were among the major laggards. Conversely, Hindustan Unilever, Tech Mahindra, Nestle, Bharti Airtel, and ICICI Bank were among the gainers.
The BSE smallcap index dropped 2.23 per cent, and the midcap gauge declined 1.60 per cent. Among sectoral indices, realty tanked 2.50 per cent, oil & gas fell 2.30 per cent, while industrials, energy, capital goods, consumer discretionary, and auto also recorded losses ranging between 1.69 per cent and 2.22 per cent.
The market is haywire, with sentiment so weak that even results in line with expectations are triggering selloffs. While the broader market is under pressure, large-cap stocks are showing some resilience.
“From the taper-tantrum to geopolitical risks, the Indian market has withstood numerous challenges in its history,” said Vinod Nair, Head of Research at Geojit Financial Services.
In Asian markets, Seoul, Shanghai, and Hong Kong closed in positive territory, while Tokyo ended lower. The Bank of Japan raised its key interest rate to 0.5 per cent from 0.25 per cent.
European markets
European markets traded higher, while US markets ended in the green on Thursday.
US President Donald Trump, addressing the World Economic Forum via video conference on Thursday, offered businesses lower taxes for manufacturing in the US while threatening tariffs if they failed to comply.
Trump also said he plans to request Saudi Arabia and OPEC to reduce oil prices, asserting that a decline in prices could bring an immediate end to the Russia-Ukraine war.
On the domestic front, Foreign Institutional Investors (FIIs) sold equities worth Rs5,462.52 crore on Thursday, according to exchange data.
Global oil benchmark Brent crude rose 0.27 per cent to $78.50 a barrel. The rupee appreciated by 22 paise to close at 86.22 against the dollar on Friday.
In the previous session, the Sensex had risen 115.39 points or 0.15 per cent to settle at 76,520.38, while the Nifty gained 50 points or 0.22 per cent to end at 23,205.35.
