The Indian stock market experienced a sharp decline in early trading on Friday, with both benchmark indices, the Sensex and Nifty, facing significant losses. The BSE Sensex plunged by 1,079.44 points, reaching 80,210.52, while the NSE Nifty dropped 330.55 points, settling at 24,218.15 as of 10:46 AM.
The sell-off was largely driven by weakness in metal stocks, foreign fund outflows, and unfavorable global market trends. Among the major losers in the Sensex’s 30-stock pack were Tata Steel, JSW Steel, IndusInd Bank, Axis Bank, Mahindra & Mahindra, Larsen & Toubro, State Bank of India, and Reliance Industries. In contrast, stocks like Bharti Airtel, Nestle, Adani Ports, and Hindustan Unilever saw gains.
Data showed that Foreign Institutional Investors (FIIs) sold equities worth ₹3,560.01 crore on Thursday, further contributing to the downward pressure. Experts noted that the subdued performance of Indian markets is largely due to weak global cues and anticipation of announcements from the Federal Reserve regarding interest rates.
Ajay Bagga, a banking and market expert, explained that the global market’s uncertainty, particularly regarding the effectiveness of China’s stimulus measures, has kept Indian markets in a consolidation phase. He suggested that the market could see a rally in sectors such as railways, defense, and industrials as the budget season approaches, with a possible boost in the post-Federal Reserve rate cut period.
Sectoral performance on the NSE showed declines across most indices, with the Nifty Oil and Gas and Nifty Realty indices managing to register gains. Among Nifty 50 stocks, 14 advanced while 36 declined, with Eicher Motors, BPCL, Adani Enterprises, Nestle India, and ICICI Bank being the top gainers. Meanwhile, Tata Steel, JSW Steel, and Hindalco were the leading losers.
Akshay Chinchalkar, Head of Research at Axis Securities, pointed out that the index now sits within the 50- and 100-day averages, with immediate support at 24,500. He indicated that bulls must defend this level to prevent further declines.
Globally, Asian markets showed mixed performance, with Japan’s Nikkei 225 falling by 1.24%, Hong Kong’s Hang Seng dropping 1.46%, and Taiwan’s Weighted Index inching up by 0.18%. South Korea’s market remained positive amidst regional uncertainties.
