Equity benchmarks continued their negative streak in early trading on Friday, with the BSE Sensex dropping 518 points to 78,699 and the Nifty losing 138 points to settle at 23,813. This marks the fifth consecutive day of decline for both indices.
In the past four days, the BSE benchmark has lost a significant 2,915.07 points, or 3.54%, as investor sentiment remains dampened by global factors.
On Thursday, the Sensex had fallen by 964.15 points, or 1.20%, closing at 79,218.05. During intraday trading, the index had dropped over 1,162 points, reaching a low of 79,020.08. The NSE Nifty similarly tumbled 247.15 points, or 1.02%, to end below the crucial 24,000 mark at 23,951.70.
The market breadth was overwhelmingly negative, with 2,315 stocks declining, 1,680 advancing, and 100 remaining unchanged on the BSE.
Market capitalization of BSE-listed firms has been severely impacted, with a massive erosion of between Rs.9.65 lakh crore and Rs.4.49 lakh crore in just the last four days.
Experts attribute the downturn to negative global cues. “The markets were hit by broad-based selling following the US Fed’s hawkish stance, raising concerns over fewer rate cuts next year,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities. “Rising US bond yields have weakened global currencies, including the rupee, while renewed foreign fund outflows from domestic equities may make investors more risk-averse,” he added.
