Fri Oct 25 21:10:50 UTC 2024: Indian equity benchmarks continued their downward trend, marking their fifth consecutive session of losses on Friday. The BSE Sensex fell by 662.87 points, closing at 79,402.29, while the Nifty 50 dropped 218.60 points to end at 24,180.80. This decline brings the Nifty’s total drop to 2.71% for the week. Key contributors to the losses included IndusInd Bank, which plummeted 18.99%, alongside declines from Adani Enterprises, BPCL, and others.
Despite some gains in FMCG stocks like ITC and Hindustan Unilever, the market breadth was overwhelmingly negative with 3,101 stocks falling compared to only 841 advances. The volatility index surged by 11.50%, indicating rising market uncertainty.
Foreign Portfolio Investors (FPIs) continued their selling spree with a net outflow of ₹5,062.45 crore, while domestic institutional investors (DIIs) recorded a net inflow of ₹3,620.47 crore. The broader market and banking sector also experienced steep declines. Analysts attribute the market’s performance to weak corporate earnings, persistent FII selling, and rising U.S. treasury yields.
Looking ahead, some market experts anticipate a potential technical rebound due to the oversold conditions. However, the outlook remains challenging with geopolitical issues and upcoming global events, such as U.S. elections, likely to maintain market volatility.
Key technical levels to watch include support for the Nifty at 23,892 and resistance at 24,378. Overall, the financial services sector showed relatively less decline compared to other sectors, but market sentiment remained largely bearish.
First Piper 