The Indian equity benchmarks faced significant losses on Friday, driven by substantial FII selling and negative global indicators. The Sensex concluded with a loss of 961 points, down by 1.17% to settle at 81,287, while the Nifty dropped 317.90 points, or 1.25%, closing at 25,178. Nifty Midcap 100 and NSE Smallcap 100 indices both saw declines of 1.10%, with Nifty Next50 falling by 1.30%.
Sectoral indices mostly trended downwards, except for IT, media, and consumer durables. Notably, Nifty realty experienced a significant decline of 2.26%, followed by the auto sector at 1.86%. Nifty Metal and FMCG sectors also saw losses of 1.69% each. The market breadth reflected a negative sentiment, with 1,515 stocks advancing against 2,300 declining ones, and Bank Nifty dropping by 1.08%.
Volatility increased, with the India VIX hovering around 2.6%, indicating heightened caution among traders as the benchmarks remained under pressure. Concerns over the lack of progress in US-Iran nuclear talks and ongoing AI-related uncertainties have added to market apprehensions. The rupee weakened slightly, losing 0.02% against the dollar to reach 90.98.
Analysts observed a significant breach of the crucial 25,350 support level by Nifty, signaling a shift in near-term sentiment. Despite the decline, IT stocks showed stability, recording modest gains amid structural pressures following corrections in February. The market remained cautious due to elevated volatility, geopolitical tensions, and anticipation of key macroeconomic triggers, leading to a defensive investor stance.
