Stock markets extended their losing streak Friday after concerns about high valuations and global uncertainties triggered a broad sell-off, with 219 stocks hitting 52-week lows on the National Stock Exchange. The 30-share BSE Sensex fell 241.30 points or 0.31 per cent to close at 77,378.91, while the broader NSE Nifty fell 95 points or 0.40 per cent to end at 23,431.50.
Adding to market woes, the rupee crossed the crucial 86 mark against the US dollar for the first time, falling by 14 paise to close at an all-time low of 86.00. The decline took place against the backdrop of a strengthening of the dollar and significant outflows of foreign funds.
IT stocks emerged as the only bright spot, with TCS leading the way, rising 5.60 per cent to ₹4,265. Other IT majors also posted significant gains with Tech Mahindra rising 3.59 per cent to ₹1,701.8, HCL Technologies rising 3.22 per cent to ₹1,997.1, Infosys rising 2.53 per cent to ₹1,965.8 and Wipro gained 2.51 per cent to ₹299.65.
However, the broader market witnessed significant selling pressure. Among the top losers, Shriram Finance fell 5.30 per cent to ₹532.15, followed by IndusInd Bank down 4.29 per cent to ₹938.8, Adani Enterprises fell 3.95 per cent to ₹2,380.1, NTPC fell by 3.79 per cent to ₹308.2 and BEL fell 3.72 per cent. percent to ₹270.8. During the session, 181 stocks reached their lower circuit limits, while 41 stocks reached the upper circuit limits.
“Domestic market sentiment remained subdued due to rising crude oil prices, driven by supply concerns, and a strengthening dollar index. Despite the IT sector’s resilience following positive results early in the third quarter, broader indices were bleeding due to uncertainties surrounding Trump’s policies and high valuations,” said Vinod Nair, head of research at Geojit Financial Services .
Selling pressure was greater in the broader market with the Nifty Next 50 down 1.98 per cent and the Nifty Midcap Select down 1.59 per cent. The banking sector also faced significant pressure with Nifty Bank down 1.55 percent to 48,734.15.
Shrikant Chouhan, head of equity research at Kotak Securities, noted: “Indian equity markets have underperformed most global markets. The correction was more severe in midcap and smallcap stocks. Almost all major sectors saw a decline this week, with the BSE Capital Goods, BSE Power and BSE Reality indices witnessing a weekly loss of over 5 percent.”
Foreign institutional investors (FIIs) remained net sellers, losing ₹7,170.87 crore in the capital markets on Thursday. Meanwhile, the global oil benchmark for Brent crude futures rose 1.96 percent to $78.43 per barrel.
The market volatility index, India VIX, rose 1.75 percent to 14.92, indicating increased uncertainty. The total trading volume was 2,610.22 lakh shares, valued at ₹25,01,748.78 lakh.
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said: “Markets continued their downward trajectory with the rupee hitting new lows on the back of a stronger dollar, which has further dampened investor sentiment. With expensive valuations of Indian markets in general still a concern, investors would mainly resort to stock-specific activities.”
