Indian equity markets slumped in Friday’s session after tension between Israel and Iran heated up. The markets started the session on a gap-down and continued the sell-off. However, not much relief, but markets recovered some lost ground before closing in the red.
The Nifty 50 closed the session 170 points or 0.68% lower at 24,718.60, the Sensex fell 573 points or 0.70% to end at 81,119.
For the week, the Nifty 50 ended 1.50% lower, while the Sensex corrected 1.66%.
The banking stocks were in line with the overall market sentiments, the Nifty Bank lost 555 points or 0.99% to end at 55,527.
The sell-off was more intense in largecap stocks compared with mid and small-cap stocks. The BSE Midcap inched down 145 points or 0.32% to 45,681. On the other hand, the BSE Smallcap remained steady, surging 161.18 points or 0.30% to 53,370.29.
“The initial reaction was largely driven by a sharp rise in crude oil prices due to geopolitical tensions in the Middle East. However, a moderation in CPI inflation helped limit the downside. On the technical front, the Nifty slipped below its short-term moving average (20 DEMA) once again but witnessed a swift rebound after testing the lower end of the recent consolidation range (24,500–25,200). This suggests a possibility of continued consolidation in the index,” said Ajit Mishra, Senior Vice President of Research at Religare Broking.
This is a developing story, more details are being added. Please watch the space for updates.
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