Benchmark stock market indices experienced a volatile session on Friday, ending the week with a nearly 1% decline. The S&P BSE Sensex fell by 720.60 points, closing at 79,223.11, while the NSE Nifty50 dropped 183.90 points, ending at 24,004.75. The primary factors contributing to the downward movement were selling pressures in the IT, banking, financials, and pharma sectors.
Trivesh, the COO of Tradejini, noted that while there were hopes for a Santa Claus rally, it failed to materialize this year. Instead, the New Year’s rally only made a brief appearance, lasting just a day. He attributed the market's decline to profit booking in the IT and financial sectors, particularly after the index tested resistance levels near 24,196. Despite the resilience of major banks, which saw steady inflows, broader market sentiment was cautious. Global cues, particularly the five-day consecutive fall in US markets, also negatively impacted sentiment, even though Asian markets showed some resistance.
Amid this market volatility, certain stocks stood out. Oil and Natural Gas Corporation (ONGC) delivered a stellar performance, rising 5.11%, while Tata Motors also saw strong momentum, climbing 3.13%. SBI Life Insurance gained 1.95%, followed by Titan Company, which increased by 1.80%, and Nestle India, which advanced 1.40%.
On the other hand, technology and banking stocks bore the brunt of the declines. Wipro Limited led the losses, shedding 2.83%, followed by HDFC Bank, which fell 2.53%. Adani Ports and Special Economic Zone saw a decline of 2.30%, while Tech Mahindra slipped by 2.11%. Cipla rounded out the top losers, dropping 1.98%.
Sectoral performance reflected the broader market’s challenges, with most sectors ending in the red. The banking sector faced significant pressure, with Nifty Bank falling 1.26% and Nifty Private Bank dropping 1.00%. The healthcare sector also struggled, as the Nifty Healthcare Index declined 1.31% and Nifty Pharma fell 1.38%. Technology stocks had a tough day as well, with the Nifty IT index sliding 1.45%.
Other sectors that posted losses included Nifty Financial Services (-1.25%), Nifty Midsmall IT & Telecom (-0.77%), Nifty Realty (-0.69%), Nifty Midsmall Financial Services (-0.46%), Nifty Auto (-0.22%), and Nifty Midsmall Healthcare (-0.21%).
However, a few sectors managed to buck the trend. Nifty Media saw a gain of 1.37%, and Nifty Oil & Gas rose 1.19%. Other gainers included Nifty Consumer Durables (+0.55%), Nifty PSU Bank (+0.32%), Nifty FMCG (+0.25%), and Nifty Financial Services Ex-Bank (+0.11%). The Nifty Metal index ended flat, showing no change for the day.
The overall market sentiment reflected caution, with profit booking and external global factors weighing on investor confidence. While certain sectors displayed resilience, the broader market was impacted by declines across key indices and sectors.
