Mkts back in red on weak global cues

Reeling Under Pressure

• BSE Sensex declined 453.85 pts or 0.62% to 72,643.43

• During the day, Sensex tanked 612.46 pts or 0.83% to 72,484.82

• NSE Nifty dropped 123.30 pts or 0.56% to 22,023.35

• M&M, Tata Motors, NTPC, HCL Tech, L&T, Infosys, Tech M and SBI were major laggards

• Airtel, Bajaj Finance, Bajaj Finserv, TCS and IndusInd Bank among gainers

• Mid- & Small-caps continued to drag market sentiment

Mumbai: Benchmark stock indices Sensex and Nifty dropped over half-a-per cent on Friday, tracking deep losses in oil and gas, auto and energy stocks amid relentless foreign capital outflows. Besides, concerns over mid- and small-cap stocks continued to dent investors’ sentiment and the broader market, traders said.

In a range-bound trade, the 30-share BSE Sensex declined 453.85 points or 0.62 per cent to settle at 72,643.43 after a weak beginning. During the day, the benchmark tanked 612.46 points or 0.83 per cent to 72,484.82. The NSE Nifty dropped 123.30 points or 0.56 per cent to 22,023.35. On the weekly front, the BSE benchmark tanked 1,475.96 points or 1.99 per cent, while the NSE Nifty declined 470.2 points or 2.09 per cent.

The BSE small-cap index dropped 2,640.82 points or 5.91 per cent and the mid-cap gauge tumbled 1,602.41 points or 4 per cent.

“Cautiousness towards mid- & small-caps continued to drag market sentiment, dampening the broader market. However, the moderation in global commodity prices and the upward revision of India’s GDP for FY25 are poised to highlight robust domestic demand, potentially supporting a rebound once the broader market attains stability,” said Vinod Nair, head (research), Geojit Financial Services.

“Domestic equities followed global cues as weak US and Asian markets fuelled more profit-taking as investors sold auto, oil & gas, banking and power stocks. The recent subdued economic readings related to inflation and IIP numbers too didn’t help either, which has further aggravated the bearish mood. FIIs pressing the sell button in recent trades and crude oil prices rising above $81 a barrel have been prompting investors to offload shares. With uncertainty around, local investors will closely follow global markets to decide on their exposure toward equities,” said Prashanth Tapse, senior V-P (research), Mehta Equities Ltd.

M&M emerged as the biggest loser on the Sensex chart, diving 4.75 per cent, followed by Tata Motors, NTPC, HCL Technologies, Larsen & Toubro, Infosys, Tech Mahindra and State Bank of India. Index heavyweight Reliance Industries declined nearly 1 per cent. On the other hand, Bharti Airtel, Bajaj Finance, Maruti, Bajaj Finserv, Tata Consultancy Services and IndusInd Bank were the gainers. In the broader market on Friday, the BSE midcap gauge slipped 0.51 per cent, while the smallcap index went up by 0.25 per cent.

Among the sectoral indices, oil & gas fell by 2.24 per cent, energy declined by 1.95 per cent, auto lost 1.74 per cent, capital goods (1.25 per cent), consumer discretionary (0.57 per cent), IT (0.55 per cent), bankex (0.50 per cent) and financial services (0.32 per cent). In contrast, commodities, telecommunication and services were the gainers. The government on Friday approved an electric-vehicle policy, under which duty concessions will be given to companies setting up manufacturing units in the country with a minimum investment of $500 million, a move aimed at attracting major global players like US-based Tesla. According to an official statement, the companies setting up manufacturing facilities for e-vehicles will be allowed to import a limited number of cars at lower customs duty. On Thursday, petrol and diesel prices were cut by Rs 2 per litre each as state-owned oil companies ended a nearly two-year-long hiatus in rate revision.

In Asian markets, Seoul, Tokyo and Hong Kong settled lower, while Shanghai ended in the green. European markets were trading with marginal gains. The US markets ended in negative territory on Thursday. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,356.29 crore on Thursday, according to exchange data. Global oil benchmark Brent crude dipped 0.68 per cent to $84.84 a barrel. Meanwhile, India’s exports rose 11.9 per cent to $41.4 billion in February, the highest in the current fiscal, while the trade deficit stood at $18.7 billion, according to the data released by the commerce ministry.

Imports were valued at $60.1 billion, up 12.16 per cent compared to $53.58 per cent in February 2023. The BSE benchmark climbed 335.39 points or 0.46 per cent to settle at 73,097.28 on Thursday. The NSE Nifty gained 148.95 points or 0.68 per cent to 22,146.65.