Closing Bell: Sensex, Nifty settle lower; bid adieu to FY25 with 5% gains

Domestic equity markets ended Friday's choppy session on a lower note, weighed down by weak global cues and rising concerns about US tariff issues. The BSE Sensex settled at 77,414.92, down by 191.51 points, or 0.25 per cent. The NSE Nifty50 also ended 72.60 points, or 0.31 per cent lower at 23,519.35.

 

On similar lines, the Nifty Midcap100 fell, and the Nifty Smallcap 100 ended lower by 0.32 per cent and 0.15 per cent, respectively. Sectoral trends were mixed, with FMCG closing in the green, while IT and realty faced pressure.

 

On Friday, 19 out of the 30 constituent stocks of the Sensex settled lower, dragged by IndusInd Bank, Mahindra & Mahindra, HCL Tech, Maruti Suzuki India, and Infosys, which registered losses of up to 3.57 per cent. Conversely, Kotak Mahindra Bank, Hindustan Unilever, ICICI Bank, and Tata Motors were among the 11 constituent stocks that managed to eke out gains of up to 1.88 per cent.

 

The market’s upward momentum, Vinod Nair, Head of Research, Geojit Investments, said, has stalled as investors evaluate the implications of these tariffs on the auto, ancillary, pharma, and other sectors. "Asian markets are experiencing a new phase of consolidation as the latest US tariff measures are expected to have a significant impact on major manufacturing economies," said Nair. Additionally, a rise in Japan's CPI has contributed to the prevailing weakness. 

Ajit Mishra, senior vice president for research at Religare Broking, says that investors are awaiting fresh triggers for the next decisive move, while uncertainty surrounding tariff talks is limiting the upside. "In the meantime, a stock-specific trading approach remains advisable. We continue to favor banking and financial stocks while recommending a selective approach in other sectors," Mishra said."

 

Market performance in FY25

Equity markets, which began FY25 with a bull rally during the first half as benchmarks scaled their historic highs in September 2024, witnessed a steep correction in the second half. This was primarily driven by the departure of foreign investors from the Indian markets, weaker-than-expected earnings of India Inc., and, more recently, concerns arising from US President Donald Trump's tariff policies.

 

Owing to all these factors, the markets posted muted gains for the fiscal year. In FY25, benchmarks – Sensex and Nifty50 – logged gains of nearly 5 per cent each. Meanwhile, from the broader basket, the Nifty Midcap100 and Nifty Smallcap100 indices posted gains of 5.4 per cent and 7.48 per cent, respectively.

 

Nifty finds support at 23,400

Since the Nifty50 made a high around the previous swing of 23,800, the index has been consolidating. Going forward, Rupak De, senior technical analyst at LKP Securities, said that 23,400 might act as immediate support for the index. A fall below 23,400 could take Nifty towards 23,200, where crucial support is placed.

 

"If Nifty holds above 24,200, it may witness further upside. On the other hand, if the Nifty does not fall below 23,400, it might rise towards 23,600 and higher," De said.  On the weekly charts, Amol Athawale, VP-technical research at Kotak Securities, said that the Nifty formed a Doji candlestick formation, indicating indecisiveness between bulls and bears. Athawale believes that the market is currently experiencing selling pressure at higher levels. However, the short-term sentiment remains positive.

 

"For traders, 23,650 would be a key level to watch. As long as the market trades below this level, it could retest 23,280. Further weakness could also drag the market down to 23,100. Conversely, if the market rises above 23,650, it could bounce back to 23,850," Athawale said.  A dismissal of the 23,850 breakout, he believes, could push the market towards 24,000.