Benchmark Indices Witness High Volatility, Sensex Slips Slightly, Nifty Closes Marginally Higher
Equity benchmark indices, Sensex and Nifty, erased their initial gains to close almost unchanged on Friday in a highly volatile trading session. Market sentiments weakened amid escalating uncertainties over the global trade war, dampening investor enthusiasm.
The 30-share BSE Sensex closed marginally lower, slipping 7.51 points to end at 74,332.58, snapping its two-day winning streak. Earlier in the day, Sensex had surged 246.34 points (0.33%) to hit an intraday peak of 74,586.43 before surrendering the gains due to heightened volatility.
Conversely, the broader NSE Nifty managed to close slightly higher by 7.80 points at 22,552.50. During the session, it gained as much as 89 points (0.39%) to record an intraday high of 22,633.80.
Global Market Uncertainty Affects Investor Sentiments
Vinod Nair, Head of Research at Geojit Financial Services, attributed the market volatility to global uncertainties triggered by recent US tariff impositions and the retaliatory stance from other countries.
“The global market is experiencing heightened uncertainty due to US tariff impositions and counter threats from its peers. This ambiguity has led to increased risk aversion and diminished appeal of equities. Emerging Markets have been particularly affected, experiencing significant outflows,” Nair said.
He further noted concerns around the S&P 500 index, highlighting signals of a deeper correction driven by tariff-related worries impacting the US economy. Despite global instability, Nair underscored the resilience displayed by the Indian markets in recent sessions.
Sensex Gainers and Losers
Prominent gainers on the Sensex included Zomato, IndusInd Bank, NTPC, Infosys, HCL Technologies, Titan, Power Grid, Hindustan Unilever, Tech Mahindra, and ITC.
Stocks that dragged the index lower were Reliance Industries, Nestle India, Tata Motors, Adani Ports, Tata Steel, UltraTech Cement, and Kotak Mahindra Bank.
Asian and European Markets Remain Under Pressure
Asian markets ended in the red, with major indices in Tokyo, Shanghai, Hong Kong, and Seoul closing lower. European markets also traded lower during mid-session deals, reflecting cautious global sentiment. On Thursday, Wall Street closed lower as concerns over trade tensions weighed on investors.
Institutional Investor Activity
Foreign Institutional Investors (FIIs) remained net sellers, offloading equities worth Rs 2,377.32 crore on Thursday. Conversely, Domestic Institutional Investors (DIIs) provided support to the markets, making net purchases amounting to Rs 1,617.80 crore, according to exchange data.
Brent Crude Prices Rise
Adding to the complexity, global oil benchmark Brent crude rose by 1.32% to USD 70.38 per barrel, potentially influencing inflationary trends.
Investors Advised to Focus on Large Cap Stocks
Looking ahead, Nair advised investors to consider overweight positions in large-cap stocks, given their stability in earnings and attractive valuations.
“While a recovery in corporate earnings could significantly improve domestic sentiment, investors could go overweight on large caps given stability in earnings and increasing valuation comfort,” Nair added.
On Thursday, the Sensex had advanced by 609.86 points to close at 74,340.09, marking its second consecutive day of gains, while Nifty gained 207.40 points to settle at 22,544.70.
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