The Indian stock market extended losses for the fifth consecutive session, with Sensex and Nifty tumbling more than 1% intraday before paring most of the losses and closing 0.4% lower each on Friday as oil prices above $100 per barrel, FII selling and other factors spooked investors.
Sensex fell 332 points to close at 76,059.77, while Nifty 50 declined 102 points to end the session at 23,767 mark during Friday's trading session. Broader markets also saw a sharp recovery after a sharp crash in the morning trading hours, with Nifty Midcap 50 index closing in the green.
Here are today’s top gainers on Nifty
Here are today’s top gainers on Sensex
Here are today’s top losers on Nifty
Here are today’s top losers on Sensex
What lies ahead?
Market sentiment is likely to remain under pressure in the near term, as sustained oil prices in a higher range could begin to adversely impact key macroeconomic indicators and growth dynamics, said Vinod Nair, Head of Research at Geojit Investments. He noted that the US 10-year yield has climbed to a 52-week high despite crude oil trading well below its crisis-era peak, reflecting the bond market's concerns over energy-led inflation risks, resilient labour market conditions, and a persistently hawkish Fed.
"These factors have pushed the implied probability of a rate hike in September. Washington’s new tariffs on imports added another headwind for export-driven economies, with technology-heavy markets having been hit the most as higher rates weigh on growth and investors are increasingly seeking to diversify their concentrated exposure to other emerging market opportunities. Bank Nifty outperformed, supported by favourable valuations and credit growth outlooks," he added.
"The Nifty slipped from the consolidation on the daily chart on Thursday, with follow-up selling taking the index to 23600 on Friday. Besides, the index has fallen below the 50 EMA as well, confirming a new downtrend for the short term. Immediate support is placed at 23600. A fall below 23600 might trigger a severe correction, as investors would be running away, putting the Nifty at greater downside risk. On the higher end, 24000 will become the line of polarity. Unless the Nifty moves higher to reclaim 24000, the broader trend is likely to remain weak," said Rupak De, Senior Technical Analyst at LKP Securities.
