Sensex tanked 672.53 points to 71,816.46 in early trade and Nifty dropped 218.2 points to 21,777.65 on Friday. The market sentiment was grim as only six out of the Nifty companies advanced, while a staggering 44 witnessed declines.
Among the Nifty firms, notable gainers included ONGC, Apollo Hospital, Cipla, ITC, and Dr. Reddy, while BPCL, HDFC Life, Bajaj Auto, Infosys, and Coal India were the prominent losers. Oil prices surged nearly 4 per cent amid concerns of further escalation in tensions between Israel and Iran.
Varun Aggarwal, founder and managing director, Profit Idea, said, “The Nifty 50 index experienced high volatility and closed the day lower by 152 points below the 22,000 mark. Although the index remained below the critical moving average of 21-EMA, a bullish harami pattern emerged on the hourly chart, hinting at a potential bullish reversal in the near term. Additionally, a bullish divergence was observed on the hourly chart.”
Amid weak global cues, the domestic equity market opened lower on Friday.Asian markets traded lower, while the US stock market ended mixed following hawkish comments from US Federal Reserve officials and strong economic data suggesting a reluctance to cut interest rates in the near future.
US equity futures fell, while Japanese stocks declined around 2 per cent. Haven assets rallied, with Treasury yields falling and an index of dollar strength advancing.Economic data showed subdued US jobless claims and a stronger-than-expected Philadelphia Fed factory index. However, concerns over inflation resurfaced, dampening expectations for rate cuts in 2024.
Just a day earlier, the Indian stock market opened with a gap-up, indicating a rise. After remaining closed on the occasion of Ram Navami yesterday, the market saw a swift opening with gains following a day of holiday.
The BSE Sensex commenced at 73,183 levels, marking a rise of 239.42 points or 0.33%. Similarly, the NSE Nifty opened at 22,212 levels, reflecting an increase of 64.45 points or 0.29%.
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