After rising 2.3% in the first two days of the calendar year, investors resorted to profit-booking on Friday, leading to a decline of up to 0.90% in the benchmark indices. However, the indices managed to close the week with gains of up to 0.80%, marking the second consecutive weekly rise.
The Sensex opened over 129 points higher but slipped into negative territory and remained there throughout the session, ending the day at 79,223.11, down 720.60 points, or 0.90%. Similarly, the NSE’s Nifty fell 183.90 points, or 0.76%, to close at 24,004.75.
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The benchmark indices had gained 0.47% and 1.83% on Wednesday and Thursday, respectively, driven by demand for auto, IT, and financial sector shares.
“The market concluded the week on a pessimistic note as a sell-on-rally sentiment prevailed due to a strong US dollar, high valuations, and investors shifting towards a multi-asset strategy,” said Vinod Nair, Head of Research, Geojit Financial Services.
“The markets remained volatile throughout the week, with multiple factors influencing investor sentiment. These included the trajectory of official interest rates, the potential return of a Trump administration, and uncertainties surrounding regional conflicts,” said Joseph Thomas, Head of Research, Emkay Wealth Management.
The domestic equity markets have been weighed down by slower economic growth, sluggish manufacturing activity, liquidity deficits in the interbank market, and a sharply depreciating Indian Rupee against the US Dollar. These factors are expected to continue influencing market direction in the coming weeks, Thomas added.
On Friday, IT, TECK, banking, and capital goods sectors were the top losers, falling up to 1.31%. However, for the week, auto, oil and gas, consumer durables, and energy sectors emerged as top gainers, rising over 3% each.
Investors’ wealth declined by Rs 69,216 crore on Friday but increased by Rs 7.46 lakh crore over the week to Rs 449.78 lakh crore.
Foreign portfolio investors (FPIs) sold shares worth Rs 4,227.25 crore on Friday and Rs 10,110.94 crore during the week. Domestic institutional investors (DIIs), on the other hand, purchased shares worth Rs 820.60 crore on Friday and Rs 9,253.70 crore over the week.
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The broader market indices outperformed the benchmarks both on Friday and over the week.
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