Indian equities experienced significant selling pressure on Friday, following notable gains recorded the previous day. The S&P/BSE Sensex declined by 720.60 points, or 0.90%, to settle at 79,223.11, after enjoying its most robust session in six weeks just the day before. Concurrently, the NSE Nifty index fell by 183.90 points, or 0.76%, to 24,004.75, as investors engaged in profit-taking amidst a stronger dollar, rising bond yields, and climbing oil prices on the global stage.
Investor sentiment was further dampened by concerns over a potential slowdown in corporate earnings growth, prompting a keen anticipation of insights from the forthcoming third-quarter earnings reports. Despite the pressure on frontline indices, the broader market fared relatively better, with the BSE's mid-cap and small-cap indices registering declines of 0.3% and 0.1%, respectively.
Market breadth appeared somewhat positive, with 2,105 shares advancing, 1,876 shares retreating, and 122 shares remaining unchanged on the BSE. In European trade, the dollar hovered near two-year highs, positioning itself for the strongest weekly performance since November, fueled by U.S. labor market data indicating resilience and reigniting apprehensions of persistent high interest rates.
The impending inauguration of U.S. President-elect Donald Trump on January 20 amplified market uncertainties, primarily due to anticipated new tariffs and counter-trade measures that could trigger inflationary pressures.
Notable decliners within the Nifty included Cipla, Tech Mahindra, Adani Ports, HDFC Bank, and Wipro, each posting losses of 2-3%. Conversely, ONGC surged over 5%, as oil prices achieved nearly two-month highs on Thursday, buoyed by optimism surrounding China's economic growth and fuel demand, following a growth commitment from President Xi Jinping.
Additional gainers included Nestle India, Titan Company, SBI Life, and Tata Motors, which saw increases of 1-3%. Avenue Supermarts experienced an impressive 11% leap following a 17% year-over-year increase in third-quarter revenue. Wockhardt also saw a significant rise, climbing over 5% after receiving approval for Miqnaf (nafithromycin).
