On Friday, benchmark stock market indices ended their four-day winning streak with significant losses, largely driven by a sharp decline in metal stocks. The S&P BSE Sensex retreated by 735.82 points to close at 80,607.64, while the NSE Nifty50 plunged 269.95 points, settling at 24,530.90.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., noted that the market saw profit-taking activities, resulting in nearly a percent decline which erased gains from the previous session. The Nifty50, after starting flat, steadily declined throughout the trading day, closing near its lowest point.
Metal stocks were notably hit hard, with Tata Steel leading the losses with a 4.97% drop to Rs 158.10 per share. JSW Steel followed closely with a 4.68% decline, while BPCL and Hindalco saw decreases of 3.98% and 3.91%, respectively. ONGC also saw its shares decrease by 3.44%.
Amidst the broader market, some stocks managed to gain ground. Infosys topped the Nifty50 gainers list with a 1.78% increase, followed by ITC (0.62%), Asian Paints (0.60%), and Britannia (0.06%).
However, the broader indices painted a picture of widespread declines. The Nifty Midcap100 and Nifty Smallcap100 both dropped by over 2%, indicating broad-based selling pressure across market segments. The volatility index also rose by 2.13%, reflecting increased market uncertainty and risk aversion among investors.
Sector-wise, Mishra highlighted that nearly all segments ended in negative territory. Metals, realty, and energy sectors were among the worst performers, each experiencing substantial declines. Specifically, the Nifty Auto sector saw the largest fall of 2.37%, followed by Nifty Metal (-3.90%), Nifty Realty (-2.66%), and Nifty Media (-2.46%).
Even among the sectoral indices, none managed to stay in the green. Nifty Bank (-0.77%), Nifty Financial Services (-0.87%), Nifty FMCG (-0.32%), Nifty IT (-0.41%), Nifty Pharma (-1.64%), Nifty PSU Bank (-1.64%), Nifty Private Bank (-0.92%), and Nifty Healthcare (-1.73%) all recorded losses.
Looking ahead, Mishra cautioned that market participants are likely exercising caution ahead of the Union Budget, choosing to lock in profits amidst prevailing uncertainties. He suggested that further declines in the Nifty could find support around the 24,150 level, corresponding to the 20-day exponential moving average (DEMA). Traders were advised to adopt hedged strategies and focus on large-cap stocks amid the ongoing market volatility and sector-specific challenges.
