Sensex Falls 160 Points, Nifty Ends Below 23,650 Amid Oil Price, Inflation Worries; IT Stocks Outperform
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The Sensex closes around 75,238, down nearly 161 points or 0.21%, while the Nifty 50 settles below the 23,650 mark at 23,643, declining 0.19%.
Stock Market Today.
Indian equity markets ended lower on Friday after witnessing volatile trade through the session, as concerns over rising crude oil prices, rupee weakness and inflationary pressures weighed on investor sentiment.
The Sensex closed around 75,238, down nearly 161 points or 0.21%, while the Nifty 50 settled below the 23,650 mark at 23,643, declining 0.19%. The benchmark index had touched an intraday high of 23,839 before losing momentum amid broad-based selling in the second half of the session.
Banking, metal, oil & gas and realty stocks emerged as the biggest drags on the market. Nifty Bank fell 0.77%, while the PSU Bank index tumbled 1.8%. Nifty Metal declined nearly 2%, reflecting pressure on commodity-linked stocks amid global growth concerns. Realty and oil & gas shares also remained under pressure, with their sectoral indices falling around 1.8% and 1.7%, respectively.
Broader markets also ended in the red. Nifty Midcap 100 declined 0.45%, while Nifty Smallcap 100 slipped 0.61%, indicating profit booking across segments after the recent rally.
However, IT stocks provided some support to the market. Nifty IT rose 1.3%, led by gains in Tech Mahindra, Infosys, TCS and HCL Tech. FMCG, pharma and media shares also traded with gains as investors shifted towards relatively defensive sectors.
Among Sensex gainers, Tech Mahindra, Infosys, Power Grid, Maruti Suzuki and Bharti Airtel were among the top performers. On the other hand, Reliance Industries, SBI, Tata Steel, UltraTech Cement and Mahindra & Mahindra were among the major laggards.
India VIX rose nearly 1% to around 18.8, reflecting heightened caution among traders amid global uncertainty.
Vinod Nair, Head of Research at Geojit Investments Ltd, said investors turned cautious after the recent relief rally as rising bond yields, rupee weakness and fuel price hikes revived inflation concerns.
“Favourable valuations and a solid Q4 earnings print are cushioning the downside. Focus has shifted to potential fiscal and monetary measures to defend the rupee and stabilise the Balance of Payment,” he said.
He added that global markets are also witnessing pressure as rising bond yields paused the AI-led rally, while geopolitical developments, especially any progress regarding the Strait of Hormuz, are likely to determine near-term market direction.
Ponmudi R, CEO of Enrich Money, said persistent Middle East tensions and the worsening energy crisis continued to keep investors on edge.
“International crude oil prices surged towards the $100 mark, while domestic crude futures rallied nearly 4% to trade above Rs 10,000, intensifying fears over inflation, corporate margins, and the broader economic outlook,” he said.
He further noted that India’s decision to raise retail fuel prices by more than Rs 3 per litre reinforced concerns that the ongoing energy crisis may have a prolonged impact on consumers, businesses and the economy.
Technical View
Vatsal Bhuva, technical analyst at LKP Securities, said, “Bank Nifty formed a bearish candlestick pattern on the daily chart, indicating selling pressure at higher levels. The index is currently consolidating within a narrow range near lower levels, reflecting weak market sentiment and lack of strong buying momentum. Technically, the index continues to trade below its crucial short-term 20-day moving average, which suggests a cautious undertone in the near term. Momentum indicators also remain weak, with RSI trending lower near the 42 mark.”
The overall chart structure indicates continued softness in the index. On the levels front, immediate support is placed near 53200, while the 54200-54300 zone is expected to act as a strong resistance area for Bank Nifty in the short term, he added.
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