The stock markets faced a significant decline on Friday as worries about corporate earnings and market sentiment continued to weigh on investor confidence. The Sensex dropped 329.92 points to close at 76,190.46, while the Nifty 50 slid 113.15 points to settle at 23,092.20.
At the start of the trading session, there was some optimism driven by positive global cues. Devarsh Vakil from HDFC Securities noted, “Markets opened higher due to favorable trends in Asian equities and a tech stock rally that lifted Wall Street to a new high.”
However, the day quickly turned volatile, with Ajit Mishra from Religare Broking commenting, “The market slid nearly 0.5% as it continued its consolidation phase post a two-day recovery. The Nifty index saw fluctuating movements before closing near its daily low.”
Most sectors struggled during the day, with 11 out of 13 major sectors ending in negative territory. The IT and FMCG sectors were exceptions with some positive performance. Ameya Ranadive, a Senior Technical Analyst, highlighted that concerns over corporate earnings overshadowed the benefits of lower oil prices and expected US rate cuts.
Dr. Reddy’s Laboratories suffered the most, with a 4.90% decline, while Hindustan Unilever stood out with a 2.52% gain. Other notable performers included Britannia (+1.74%) and Eicher Motors (+1.45%).
Looking at the bigger picture, Manish Bhandari from Vallum Capital Advisors mentioned, “As the market cycle shifts after three years, we anticipate a flat return in CY25. The rupee is also expected to stabilize after facing depreciation against the DXY.”
Despite the challenges, some analysts remain cautiously optimistic about the market’s long-term outlook. Vinod Nair from Geojit Financial Services stated, “The market is likely in the final phase of consolidation, and with a 14% correction in the broad market, further downside seems limited due to strong economic fundamentals.”
As the market braces for the Union Budget, investors are advised to remain watchful for policy announcements that could guide the ongoing correction. The insights from market experts provide a detailed understanding of the various factors influencing current market sentiment.
