Sensex Takes Steep Dive, Nifty Follows Suit (Image Source: iStockphoto)
After a promising start with Nifty hitting an all-time high, Indian stock indices faced a downward spiral on Friday. The downturn was led by market giants like Reliance Industries, HDFC Bank, and IT stocks.
The Sensex saw a significant decline of 732.96 points, closing at 73,878.15, while the Nifty also saw a considerable drop of more than 150 points, settling at 22,475.85. This downturn led to investors losing approximately Rs 2 lakh crore in market value. Adding to the apprehension, the fear gauge India VIX surged by 9 per cent to nearly 15, marking its seventh consecutive session of gains.
Within the Nifty index, several prominent companies, including Coal India, ONGC, Grasim, Hindalco, and Apollo Hospitals were among the top gainers. On the other hand, Larsen and Toubro Ltd, Maruti, Reliance Industries, Nestle India, Bharti Airtel were among the top losers.
As indicated by exchange data, the Foreign Institutional Investors (FIIs) divested equities amounting to Rs 964.47 crore, meanwhile Domestic Institutional Investors (DIIs) were net buyers on Thursday as they purchased securities worth Rs 1,352.44 crore.
Vinod Nair, Head of Research, Geojit Financial Services, said, “Profit booking and a degree of caution ahead of the release of the US non-farm payroll resulted in selling pressure in the market. However, the absence of significant negative surprises in Q4 earnings thus far, along with a decline in oil prices, might help to mitigate the downside. Though the correction was broad-based, the large-cap stock was the key underperformer due to the moderation of FII’s exposure to the domestic market.”
Global Market Overview
Asian markets opened on a positive note, with the MSCI Asia ex-Japan index climbing by 1.1 per cent. Hong Kong’s Hang Seng Index recorded a notable 2 per cent surge, heading towards a 5 per cent gain for the week. On Wall Street, equities witnessed an uptick following comments from Fed Chair Jerome Powell suggesting that further interest rate hikes were unlikely.
Crude Oil Update
Oil prices inched higher on Friday with the anticipation of OPEC+ maintaining output cuts. However, both Brent crude futures for July and U.S. West Texas Intermediate crude for June were poised for weekly losses due to uncertainties surrounding the U.S. economy and minimal disruptions in crude supply despite the Israel-Hamas conflict. Brent crude futures rose by 18 cents to USD 83.86 per barrel, while U.S. West Texas Intermediate crude was up by 19 cents to USD 79.14 per barrel.
