Major Indices Plummet
Indian equity benchmarks experienced a significant downturn, with both the BSE Sensex and NSE Nifty closing considerably lower. The 30-share BSE Sensex recorded
a substantial loss of 1,048.16 points, settling at 82,626.76, and even hitting an intraday low of 82,534.55 during trading. Similarly, the NSE Nifty saw a dip of 336.10 points, ending the day at 25,471.10 after reaching an earlier low of 25,444.30. This broad-based decline extended to a weekly perspective, with the Sensex shedding 953.64 points (1.14 per cent) and the Nifty losing 222.6 points (0.86 per cent). The market breadth indicated a prevailing bearish sentiment, as evidenced by a significantly larger number of declining stocks compared to advancing ones on the BSE, with 2,960 stocks losing ground, 1,253 gaining, and 151 remaining unchanged.
IT Stocks Hit Hard
The technology sector was particularly battered, with the Nifty IT index touching a ten-month low before concluding the trading session down by 1.4 per cent. Analysts point to ongoing challenges within the IT industry, including escalating concerns about how rapid advancements in Artificial Intelligence (AI) might fundamentally alter established service models. This potential disruption raises questions about the future revenue streams for IT companies. Beyond IT, other sectors also faced considerable pressure. Metal stocks experienced heavy profit-taking, declining by 3.21 per cent. The Realty and Commodities indices also saw substantial drops of 2.27 per cent each. The Utilities sector was down 2.26 per cent, and the Energy index fell by 1.94 per cent. Other indices, including FMCG (1.74 per cent), Power, Oil & Gas, and Services (each down 1.72 per cent), also ended in negative territory.
Key Laggards Identified
Within the Sensex pack, several prominent companies registered significant declines, contributing to the overall market slump. Major laggards included Hindustan Unilever, Titan, Tata Steel, Adani Ports, Tata Consultancy Services (TCS), Reliance Industries, HDFC Bank, Bharat Electronics Ltd, Asian Paints, Mahindra & Mahindra, and HCL Technologies. In contrast, only a couple of Sensex constituents managed to end in positive territory, namely Bajaj Finance and State Bank of India, which were the sole gainers amidst the widespread selling pressure.
Global Influences Weigh
The domestic equity performance was significantly influenced by weak global market sentiment, exacerbated by anticipation of upcoming inflation data from the United States. Renewed anxieties surrounding AI-driven disruptions also played a role in dampening investor confidence. This global economic uncertainty was reflected in commodity markets as well. Precious metals, including gold and silver, saw a sharp fall of over 5 per cent in the national capital. Silver prices dropped to ₹2.55 lakh per kilogram, and gold prices slipped to ₹1.58 lakh per 10 grams. This decline in bullion prices followed stronger-than-expected US jobs data, which diminished expectations for imminent interest rate cuts by the Federal Reserve. On the currency front, the Indian Rupee closed marginally lower, down 3 paise to 90.64 against the US dollar. Meanwhile, Brent crude oil saw a slight increase, rising 0.32 per cent to USD 67.81 per barrel.
International Markets Mirror Slump
The negative sentiment observed in Indian markets was consistent with trends seen across major international exchanges. Asian indices, including Hong Kong’s Hang Seng, Shanghai’s SSE Composite, Japan’s Nikkei 225, and South Korea’s Kospi, all concluded the trading day with losses. European markets presented a mixed picture, while US equities experienced a notable decline, closing down by as much as 2 per cent on the preceding Thursday. Despite the broad-based selling pressure on Friday, data indicated that foreign institutional investors had purchased equities worth ₹108.42 crore on Thursday. Similarly, domestic institutional investors were net buyers, acquiring stocks valued at ₹276.85 crore, according to available exchange data.
