Sensex, Nifty close in red for 4th consecutive week
What's the story
India's equity indices witnessed a nearly 1% fall on Friday, marking their fourth consecutive week of losses. The decline was largely due to disappointing earnings from major companies and a cautious approach in Asian markets. The NSE Nifty ended at 24,837.00 while the BSE Sensex closed at 81,463.09. Investors are also worried about the potential impact of the India-US trade deal on market performance.
Investor sentiment
Nifty fell 0.9%, Sensex dropped 0.8%
The NSE Nifty fell by 0.9% or 225.1 points, while the BSE Sensex declined by 0.8% or 721.08 points on Friday. Both indices have fallen by 0.5% and 0.4%, respectively, in the last five trading sessions. Pranay Aggarwal, Director & CEO of Stoxkart, attributed the market fall to disappointing earnings from heavyweights such as Nestle and Bajaj Finance, which indicate a slowdown in consumer economy trends.
Market performance
Bajaj Finance falls nearly 5% on Nifty
Bajaj Finance was the biggest loser on the benchmark Nifty on Friday, falling nearly 5%. Other companies such as Shriram Finance and IndusInd Bank also witnessed declines of 3.6% and 2.6%, respectively. The Nifty PSU Bank Index fell by 1.7% while the Bank Nifty shed 0.9%.Other indices, including Nifty Metal, Nifty IT, and Auto Index, also witnessed declines of up to 1.6%.
Market impact
Broader market also witnesses sharp fall
The broader market was more affected by the negative sentiment, with Nifty Mid-cap 150 and Small-cap 250 indices falling by 1.6% and 2%, respectively. Out of the 4,154 shares traded on BSE, only 1,061 advanced while a majority of 2,969 declined. Foreign portfolio investors (FPIs) sold shares worth a net ₹1,980 crore on Friday, while domestic investors bought shares worth ₹2,138.6 crore in response to these market trends.
Market forecast
Investors could consider buying on dips
Ruchit Jain, Head of Technical Research at Motilal Oswal Financial Services, said that stocks have run up significantly since April, and muted results by index heavyweights led to profit booking after the sharp rally. He added that the index decisively breached a key support level of 24,950, indicating a price-wise correction in the short term. Jain suggested that investors could consider buying on dips from a medium-term perspective as these are corrections within a broader uptrend.