Stock Markets Dip Amid Trade Uncertainty and IT Sector Losses
Market Overview
Mumbai: On Friday, stock markets experienced a decline in a range-bound session, primarily influenced by losses in the IT sector and sluggish trends across Asian markets due to trade uncertainties following a US appeals court's temporary reinstatement of reciprocal tariffs.
The BSE Sensex fell by 182.01 points, or 0.22%, closing at 81,451.01, with 24 of its components declining and only six advancing. At one point during the day, it had dropped by 346.57 points, reaching a low of 81,286.45.
The NSE Nifty also saw a decrease, dropping 82.90 points, or 0.33%, to settle at 24,750.70.
While shares in the metals, IT, and auto sectors faced declines, banking stocks showed some resilience.
Analysts noted that investors were exercising caution ahead of the domestic GDP data release scheduled for after market hours.
Among the Sensex constituents, Tech Mahindra recorded the largest drop, down 1.73%. Other companies like HCL Tech, Asian Paints, NTPC, Infosys, Nestle, Sun Pharma, and Tata Steel also closed lower.
Conversely, stocks such as State Bank of India, HDFC Bank, Larsen & Toubro, Reliance Industries, and Bajaj Finserv managed to gain.
Vinod Nair, Head of Research at Geojit Investments Limited, commented, "The market continued to show range-bound movement, influenced by the temporary reinstatement of US tariffs, which led investors to adopt a cautious stance. The global market is grappling with macroeconomic concerns, and stability in global trade remains elusive, potentially leading to short-term consolidation."
Prashanth Tapse, Senior VP of Research at Mehta Equities Ltd, added, "The markets ended lower amid weak Asian cues as investors reduced their positions in IT, metal, oil & gas, and auto shares."
The BSE midcap index fell by 0.39%, while the smallcap index rose by 0.17%.
Sector-wise, metals experienced the steepest decline at 1.68%, followed by BSE Focused IT and commodities, both down 1.14%. Utilities, tech, auto, and telecommunications also saw losses.
In contrast, financial services, bankex, and capital goods sectors recorded gains.
On a weekly basis, the BSE benchmark dropped 270.07 points, or 0.33%, while the Nifty fell by 102.45 points, or 0.41%.
Asian markets closed in the red, with South Korea's Kospi, Japan's Nikkei 225, Shanghai's SSE Composite, and Hong Kong's Hang Seng all settling lower.
European markets, however, were trading positively, and US markets had ended higher on Thursday.
According to exchange data, Foreign Institutional Investors (FIIs) purchased equities worth Rs 884.03 crore on Thursday, while Domestic Institutional Investors (DIIs) bought equities worth Rs 4,286.50 crore.
The global oil benchmark, Brent crude, increased by 0.44% to USD 64.43 per barrel.
On Thursday, the BSE Sensex had risen by 320.70 points, or 0.39%, closing at 81,633.02, while the Nifty gained 81.15 points, or 0.33%, reaching 24,833.60.