Markets snap 2-day winning streak; realty, oil & gas stocks falter

Equity benchmarks Sensex and Nifty erased early gains to close with losses in a volatile session on Friday, ending their two-day winning streak as investors reduced exposure to realty, oil & gas, and healthcare stocks amid a mixed trend in global markets.

 

Unabated foreign fund outflows further dented investor sentiment. After oscillating between gains and losses, the 30-share BSE Sensex fell 329.92 points (0.43 per cent) to settle at 76,190.46, after hitting an intraday low of 76,091.75 (down 428.63 points or 0.56 per cent). The NSE Nifty declined 113.15 points (0.49 per cent) to 23,092.20. 

On a weekly basis, the BSE Sensex fell 428.87 points (0.55 per cent), while the Nifty slipped 111 points (0.47 per cent). “Markets ended weak in volatile trade due to selling in auto, oil & gas, and realty shares. While a sharp appreciation in the rupee against the dollar limited the fall, the overall sentiment remains cautious with a weak bias. Investors are expected to tread cautiously ahead of the Budget announcement,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.

 

From the 30-share blue-chip pack, major laggards included Mahindra & Mahindra, Zomato, Tata Motors, IndusInd Bank, Reliance Industries, Larsen & Toubro, UltraTech Cement, HDFC Bank, Adani Ports, and Bajaj Finserv. In contrast, Hindustan Unilever, Tech Mahindra, Nestle, Bharti Airtel, and ICICI Bank were among the gainers. 

The BSE smallcap index fell 2.23 per cent, and the midcap index declined 1.60 per cent. Among sectoral indices, realty dropped 2.50 per cent, followed by oil & gas (-2.30 per cent), and industrials (-2.22 per cent). 

 

On the positive side, the Teck and BSE Focused IT indices gained. 

"The market is unstable, with sentiment so weak that even results meeting expectations are triggering selloffs. While the broader market is under pressure, large-cap stocks are showing resilience. From taper tantrums to geopolitical risks, the Indian market has navigated numerous challenges in the past," said Vinod Nair, Head of Research at Geojit Financial Services.

 

In Asian markets, Seoul, Shanghai, and Hong Kong ended higher, while Tokyo closed in the red. The Bank of Japan raised its key interest rate to 0.5% from 0.25%. European markets traded in the green, while US markets closed higher on Thursday.

 

US President Donald Trump addressed the World Economic Forum, offering business leaders tax cuts for manufacturing in the US while threatening tariffs if they don’t. Trump also urged Saudi Arabia and OPEC to reduce oil prices, claiming it would end the Russia-Ukraine war.

 

Foreign Institutional Investors (FIIs) sold equities worth ₹5,462.52 crore on Thursday, according to exchange data. Brent crude, the global oil benchmark, rose 0.27% to $78.50 per barrel. Meanwhile, the rupee appreciated by 22 paise to close at 86.22 (provisional) against the US dollar on Friday.

 

In the previous session, the Sensex had gained 115.39 points (0.15%) to settle at 76,520.38, while the Nifty rose 50 points (0.22%) to end at 23,205.35.