ended their sixth straight week of decline on Friday, the longest losing streak since 2020, as crude prices above $100 per barrel and tighter global monetary policy weighed on sentiment.
On a weekly basis, the declined 0.65 per cent, while the slipped 0.2 per cent, largely due to Tuesday’s fall.
Market sentiment remained cautious amid foreign fund flows, IPO activity and index rebalancing, while weakness in IT and Tata Group stocks also weighed on the benchmarks.
Today, the BSE Sensex dipped 19.63 points, or 0.03 per cent, to end at 74,294.96, erasing its early gains due to CAS. The NSE Nifty 50, however, closed 75.80 points, or 0.33 per cent, higher at 23,346.40.
Broader markets outperformed the benchmark indices, with the Nifty Midcap and Smallcap indices rising up to 2 per cent. India VIX declined over 7 per cent, indicating lower volatility. Market breadth remained positive, with 370 stocks advancing and 126 stocks declining from the Nifty 500 universe.
Sectorally, cement, metals and media led the gains, while IT remained under pressure amid elevated global yields and concerns around US monetary policy.
Top movers
Among the Nifty constituents, Adani Ports, Adani Enterprises, Bharti Airtel and HDFC Bank emerged as the top gainers in Friday’s session, while TCS, TMPV and Coal India were the top laggards.
Majority of Tata Group stocks witnessed significant pressure during the session, including Tata Chemicals, Tata Investments and Tata Motors.
What to watch out for
Vinod Nair, Head of Research, Geojit Investments, said, while the recent moderation in oil prices and yields has provided near-term relief, the sustainability of the market recovery will depend on further easing of global macro risks and a meaningful revival in foreign investor inflows.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services, said that with the US Fed hike now behind the market, moderating Treasury yields, crude off its highs and strong domestic liquidity could support a cautiously positive bias.
However, he noted that Brent remains above $100 per barrel and the rupee is near ₹96 per US dollar, while geopolitical tensions, global bond yields and foreign investor flows remain key risks.
Khemka said global monetary policy remains a key focus after the Bank of Japan raised rates by 25 basis points to 1.25 per cent, while the Bank of England kept rates unchanged at 3.75 per cent in a hawkish hold, signalling that it could raise rates soon if energy-driven inflation persists.
He added that this hawkish tilt across major central banks, alongside persistent inflation concerns from elevated energy prices, could keep global bond yields and currency markets volatile.
Markets will track India’s September flash PMI, August infrastructure output, foreign-exchange reserves and bank credit growth for cues on domestic growth and liquidity, Khemka said. Globally, US industrial production, consumer sentiment and China’s Loan Prime Rate decision will provide further cues.