Domestic equity benchmarks, the Sensex and Nifty, snapped their six-day winning streak to end lower on Friday, as investors booked profits amid subdued global cues and uncertainty surrounding US trade and tariff developments with India and China ahead of key US inflation data.
At the closing bell, the Sensex declined 344.52 points, or 0.41 per cent, to close at 84,211.88, while the Nifty50 fell 96.25 points, or 0.37 per cent, to settle at 25,795.15.
Rupak De, Senior Technical Analyst at LKP Securities, said the 50-pack index remained weak during the session as traders continued to book profits.
“On the lower end, it slipped below the initial support of 25,850, leading to a decline towards 25,700. The next 1-2 sessions might remain volatile; however, a sustained rally looks possible thereafter. On the higher end, resistance is placed at 25,850, above which a rally towards 26,000-26,200 looks possible,” De said.
Hindustan Unilever (HUL) emerged as the top loser on Sensex, falling 3.30 per cent to Rs 2,514.95. UltraTech Cement followed with a 1.92 per cent decline, while Adani Ports, Titan, Kotak Mahindra Bank and Axis Bank fell 1.75 per cent, 1.57 per cent, 1.44 per cent, and 1.43 per cent, respectively.
Five stocks, namely, HDFC Bank, HUL, Kotak Mahindra Bank, Axis Bank and SBI, contributed heavily to the Sensex’s decline.
Among sectoral indices, the BSE Bankex index settled 0.77 per cent lower at 65,090.04, while the BSE Healthcare index fell 0.75 per cent to close at 44,883.76.
Overall, out of 4,342 actively traded stocks on the BSE, 1,872 ended higher, while 2,302 declined, and 168 closed unchanged. During the session, 155 stocks scaled their 52-week highs, whereas 68 slipped to 52-week lows. Meanwhile, 209 scrips were locked in their upper circuits and 160 in lower circuits.
Vinod Nair, Head of Research, Geojit Investments Limited, said the domestic economy had largely reaped benefits from earlier reductions in crude prices throughout the year.
“The recent rise in crude prices has spurred continuation of profit booking in India. Additionally, investor sentiment took a hit after the HSBC Composite PMI for October dropped to its lowest level since May, primarily due to a slowdown in the services sector. On a brighter note, the manufacturing PMI indicated some improvement, with companies experiencing a modest uptick in new orders and easing input cost pressures in October, attributed to the recent GST relief,” Nair said.
“However, the current subdued trend is likely to persist in the short term until there is more clarity on the impact of the US sanctions on Russia and the overall availability of crude in the market,” Nair added.
Ajit Mishra, SVP – Research at Religare Broking Ltd, said the markets extended their decline on Friday, with the Nifty falling nearly 0.4 per cent to close around 25,795. “After a flat start, the index remained under pressure throughout the session amid broad-based selling,” he said.
“Sectorally, most indices moved in line with the benchmark, with FMCG, banking, and pharma among the top losers, while metals stood out, gaining over a percent. The broader indices also ended in the red, leading to weak market breadth,” Mishra said.