Benchmark indices ended lower on Friday after a volatile session, extending their losing streak to a fifth straight week. The market recovered sharply from its early lows, when the Sensex had fallen more than 700 points, but remained in the red as elevated crude oil prices, rising global bond yields and continued geopolitical uncertainty kept investors cautious.
The BSE Sensex opened at 74,309.16 and closed at 74,781.76, down 120.83 points, or 0.16%. The Nifty 50 opened at 23,270.30 and ended at 23,398.10, down 79.70 points, or 0.34%.
Brent crude was trading at $103.65 a barrel, down 3.70%, while WTI crude stood at $98.85, down 3.54%. Despite the day’s decline, Brent has risen sharply this week as the escalating Middle East conflict raised concerns over supply and shipping disruptions.
The Sensex and Nifty fell more than 2% this week and are down around 4.8% over the past five weeks. The broader market also remained weak, with the Nifty Smallcap 100 falling 0.57% and the Nifty Midcap 100 declining 0.16% on Friday. The two indices have lost around 0.9% and 1.4%, respectively, this week.
Vinod Nair, Head of Research, Geojit Investments Limited, said that a sharp spike in crude oil prices and concerns over a higher global rate environment weighed on domestic equities, extending the recent corrective trend.
“The higher producer inflation and strong US economic data reinforced expectations of tighter monetary policy, pushing bond yields higher and sustaining FII outflows,” he added.
Nair said thae the market recovered from intraday lows, aided by value buying in select sectors, particularly IT, following a positive opening in European markets.
“Despite the rebound, weak market breadth suggests broader consolidation persists. While elevated crude prices, foreign outflows, and geopolitical uncertainty may keep volatility high, resilient domestic fundamentals and strong institutional support continue to attract buying at lower levels, limiting downside risks and supporting the medium-term outlook,” he added.
IT stocks were among the strongest performers during the session. The Nifty IT index gained 0.36%, while the Nifty MidSmall IT & Telecom index rose 0.69%.
Among Sensex stocks, HDFC Bank was the top gainer, rising 2.02%. Tech Mahindra gained 1.38%, HCLTech rose 0.85%, Eternal advanced 0.78%, Infosys gained 0.64% and BEL rose 0.62%.
Trent gained 0.53%, ITC rose 0.48%, Kotak Mahindra Bank advanced 0.42%, Adani Ports gained 0.42% and IndiGo rose 0.10%.
On the losing side, Tata Steel fell 1.67%, Reliance Industries declined 1.33%, Sun Pharma dropped 1.18%, Bajaj Finance fell 1.13% and NTPC declined 1.10%.
PowerGrid fell 1.07%, L&T declined 1.01%, Axis Bank dropped 0.99%, Maruti fell 0.96% and M&M declined 0.94%.
The Nifty Metal index was the biggest sectoral loser, falling 2.23%, while Realty declined 2.63%. Chemicals fell 0.98%, Auto declined 0.70%, Pharma fell 0.06% and Oil & Gas dropped 0.55%.
Consumer Durables declined 0.28%, Healthcare fell 0.11% and FMCG slipped 0.05%. PSU Bank declined 0.58%, while Financial Services 25/50 gained 0.14%.
Private Bank rose 0.53%, Financial Services Ex-Bank gained 0.05% and Media advanced 0.15%. Nifty MidSmall Financial Services gained 0.54%.
The Nifty MidSmall Healthcare index was almost flat, declining 0.02%, while Nifty500 Healthcare fell 0.13%.
The Nifty 100 declined 0.25%, while the Nifty 200 fell 0.23% and Nifty 500 declined 0.26%.
The Nifty Midcap 50, however, gained 0.14%, while the Nifty Midcap 100 fell 0.16%. The Nifty Smallcap 100 declined 0.57%.
India VIX, the market’s volatility gauge, rose 4.32% to 12.31.
The sell-off over the week was broad-based, with 14 of the 16 major sectors ending the week lower. Financial stocks, Reliance Industries and IT were among the key drags, with the Nifty IT index falling 5.8% for the week.
Investors now await US inflation data for further clues on the Federal Reserve’s rate trajectory. Rising oil prices and global bond yields remain key risks for Indian equities, even as domestic institutional buying and value buying at lower levels provide some support.
Markets will remain closed on Monday for a local holiday.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)