After two days of strong gains, the stock market saw a steady, broad-based decline throughout the session on Friday. The market opened in red and selling pressure increased gradually, ultimately closing with significant losses. The Sensex fell nearly 1,690.23 points or 2.25 per cent to close at 73,583.22, while the Nifty dropped 486.85 points to 22,819.60. Nearly all sectors closed in the red on Friday. PSU banks and realty, in particular, saw declines of more than 3 per cent. Auto, private banks, capital goods, and consumer durables also fell by around 2 per cent. Mid-cap and small-cap stocks also showed weakness, with the mid-cap index falling 2.2 per cent and the small-cap index falling 1.7 per cent.
“The sell-off was decisive and widespread. PSU stocks led the decline, falling over 3.8%, while banks, real estate, and auto sectors dropped more than 2.5% each, as rising global risks and weakening consumption outlook weighed on cyclical and rate-sensitive segments. The CPSE segment stood out as the only pocket of relative strength, ending marginally positive amid an otherwise weak market structure,” said Ponmudi R, CEO of Enrich Money.
Profit booking behind the fall
According to experts, the market had gained about 3.5 per cent over the past two days, after which investors began booking profits. This profit-booking impacted the entire market, and several major stocks saw sharp declines.
Global cues increased pressure
Ongoing tensions in the Middle East and uncertainty between the US and Iran also impacted the market. International markets also declined, which clearly impacted the Indian market. Rising US bond yields and weakness in global markets increased investor concerns.
Crude oil prices remain a concern
Crude oil prices remain above USD 100 per barrel, a concern for the Indian market. Higher oil prices can increase inflation, impacting corporate profits. This is why investors are currently cautious.
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
