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Indian equity benchmarks extended their losses for the fifth consecutive session on Friday, with the Sensex closing below the crucial 80,000-mark amid widespread selling pressure and disappointing corporate earnings.
The BSE Sensex plunged 662.87 points, or 0.83 per cent, to close at 79,402.29, while the Nifty 50 declined 218.60 points, or 0.90 per cent, to end at 24,180.80. The indices have now fallen for four straight weeks, with the Nifty dropping 2.71 per cent this week alone.
IndusInd Bank was the biggest laggard, plummeting 18.99 per cent, followed by Adani Enterprises (-4.90 per cent), BPCL (-4.82 per cent), Shriram Finance (-3.92 per cent), and Coal India (-3.62 per cent). However, some FMCG stocks provided support, with ITC gaining 2.24 per cent, followed by Axis Bank (1.85 per cent), BEL (1.55 per cent), Britannia (1.24 per cent), and Hindustan Unilever (1.01 per cent).
The market breadth was significantly negative, with 3,101 stocks declining against 841 advances on the BSE. Additionally, 219 stocks hit their 52-week lows, while 117 touched their 52-week highs. The volatility index, India VIX, surged 11.50 per cent to 14.54, indicating increased market uncertainty.
ITC led the gainers among Sensex stocks, rising 2.17 per cent to ₹482.10, followed by Axis Bank (+1.69 per cent) and Hindustan Unilever (+0.98 per cent). Sun Pharma and Kotak Bank also posted smaller gains of 0.53 per cent and 0.31 per cent, respectively. On the losing side, IndusInd Bank saw a steep decline of 18.56 per cent, with Mahindra & Mahindra falling 3.93 per cent, and L&T down 3.35 per cent. NTPC and Adani Ports also dropped by 3.13 per cent and 2.79 per cent, respectively.
“Indian markets have fallen on all days of the week reeling under FPI selling pressure, weak Q2 results from most corporates and rising treasury yields in the US,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
FIIs/FPIs continued their selling streak with a net outflow of ₹5,062.45 crore in the capital market segment, while DIIs maintained their buying momentum, registering a net inflow of ₹3,620.47 crore. Among other investor categories, clients recorded a minor net outflow of ₹57.77 crore, whereas NRIs showed a positive net inflow of ₹12.44 crore. Proprietary traders remained active on the buying side, contributing a net inflow of ₹40.01 crore.
The broader market faced even steeper declines, with the Nifty Next 50 falling 1.87 per cent to 69,502.95 and the Nifty Midcap Select dropping 2.03 per cent to 12,316.95. The banking sector also witnessed significant pressure, with the Bank Nifty declining 1.70 per cent to 50,655.80.
“The dismal Q2 earnings so far has aggravated the investors’ woes while persistent FII selling continued to create havoc in the market. Despite the Chinese stimulus announcement, falling crude oil prices is an indication that major economies continue to feel the slowdown pinch,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Looking ahead, market experts suggest the possibility of a technical rebound. “Due to the regressive selling, the domestic market is expected to reach the oversold territory. We can expect a tactical bounce in the near-term,” noted Vinod Nair, Head of Research at Geojit Financial Services.
The market outlook remains challenging with multiple headwinds. “Globally, geo-political development will likely keep the equity markets and prices of certain commodities volatile. In the coming weeks, key events include the US elections and the US FOMC meet,” said Shrikant Chouhan, Head Equity Research at Kotak Securities.
Technical analysts suggest key levels to watch. “Nifty could now take support from 23,892 while 24,378 could prove to be tough to breach on the up in the near term,” added Jasani.
The financial services sector showed relative resilience, with the Nifty Financial Services index declining 0.76 per cent to 23,672.15. However, the overall market sentiment remained bearish, with 428 stocks hitting their lower circuit limits compared to 184 stocks touching upper circuits.
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