The benchmark indices fell for the fourth consecutive day after a surge in Covid cases in China renewed fears of a global slowdown.
The S&P BSE Sensex slid 981 points or 1.6% to end at 59,845, the lowest since October 27. The Nifty 50 ended at 17,807, down 321 points or 1.8%, falling below the psychological level of 18,000. The Nifty index fell 2.5% for the week, losing the most in the last six-and-a-half months. Volumes on the NSE were not unusually large on Friday, suggesting lack of buyers at lower levels. On the BSE, 291 firms hit 52-week lows.
The broader indices fared worse, with the BSE midcap and smallcap index falling 3.3% and nearly 4%, respectively, on Friday. India VIX climbed 6.4% intraday – the highest since November 2. Out of 3,655 traded securities, 411 advanced, 3,181 declined and 63 stocks remained unchanged. Adani Ports, Adani Enterprises, Hindalco Industries, Tata Steel and Tata Motors were the top Nifty losers. Cyclical stocks fell the most while BFSI and defensives fell the least.
Investors have lost Rs 19.07 trillion in the last seven trading sessions, with six of them closing in the red.
FPIs net sold stocks worth Rs 706 cr while DIIs bought shares worth Rs 3,398 cr on Friday, provisional data shows. In the year to date, FPIs have sold stocks worth over $16 billion.
“Domestic equity markets corrected this week reacting to negative global cues. Globally, markets remained volatile as it reacted to reported rise in covid cases in China and a strong US GDP data. Brent crude oil prices continue to trade around the $80 per barrel mark whereas the US 10-year treasury yield saw some upward movement this week. Covid case count in China and concern about possible recession will continue to influence the global equity market in the near term,” said Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.
He added that most sectors reported negative returns this week due to broader weakness in the markets. BSE Pharma index was the bright spot as it gave positive returns led by re-emergence of covid scare.
“Globally, markets were losing their grip post the Fed announcement hinting at a further rate hike in upcoming meeting. Robust US economic data points such as better-than-expected Q3 GDP, higher consumer confidence along with a healthier jobless claims fuelled the worries flaming the volatility. Additionally, the spike in Covid cases across China dampened the appetite for risk as it instilled fears of another global Covid outbreak,” said Vinod Nair, head of Research at Geojit Financial Services.
Most Asian markets fell after forecast-beating US data fuelled expectations that the Federal Reserve will lift interest rates well into the next year. South Korea’s Kospi fell 1.8% while the Nikkei 225 shed 1%. European stock markets were trading flat in thin holiday-affected volumes. The US inflation data is due later on Friday.
“The Nifty is firmly in the grip of bears. On the weekly charts, it has reached the 20-week moving average (17,839), which can provide some relief during the next week. The crucial support is placed at 17,730-17,700 and the immediate resistance stands at 17,930-18,000,” said Jatin Gedia, technical research analyst, Sharekhan by BNP Paribas.
This article taken by financialexpress.com
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