The benchmark BSE Sensex lost 720.60 points or 0.90% to close at 79,223.11, while the broader Nifty 50 index closed at 24,004.75, lower by 183.90 points or 0.76%.
Here’s how analysts read the market pulse:
Commenting on the day’s action, Vinod Nair, Head of Research at Geojit Financial Services said that the sell-on-rally sentiment prevailed in the market due to a strong U.S. dollar, high valuation, and a shift towards a multi-asset investment strategy.
“Reducing U.S. jobless claims and potential policy shifts in the US indicate that the FED is not in a hurry to reduce interest rates in the near term. Looking ahead, the market is likely to focus on Q3 earnings, with expectations of improvement in earnings on a QoQ basis,” Nair added.
US markets
U.S. stocks rebounded on Friday, closing higher in a holiday-shortened week marked by optimism around Federal Reserve rate cuts and pro-business policies from the incoming administration.
The Dow Jones Industrial Average rose 339.86 points, or 0.80%, the S&P 500 rose 73.92 points, or 1.26%, and the Nasdaq Composite rose 340.88 points, or 1.77%.
European Markets
European stocks ended a holiday-shortened week in the red on Friday, weighed down by losses in luxury goods and spirits makers. Investors remained focused on economic data for insights into the interest rate trajectory and potential policy shifts under Donald Trump’s presidency.
The pan-European STOXX 600 index slipped 0.5% in light trading following the New Year holidays.
Tech View
The Nifty was unable to break above the 50 EMA on the daily timeframe, resulting in a market correction, said Rupak De, Senior Technical Analyst at LKP Securities, adding that the sentiment, however, remains positive as the index closed above 24,000.
“The RSI shows a bullish crossover. On the upside, the index may rise towards 24,200–24,220, with a break above 24,220 potentially pushing it to 24,500. Conversely, a decisive move below 24,000 could lead the index towards 23,700,” De added.
Most active stocks in terms of turnover
ITI Ltd (Rs 3,794.95 crore), Avenue Supermart (Rs 3,782.62 crore), HDFC Bank (Rs 2,147.80 crore), Tata Motors (Rs 1,949.27 crore), Reliance Industries (Rs 1,940.67 crore), ITC (Rs 1,789.37 crore) and ICICI Bank (Rs 1,421.09 crore) were among the most active stocks on NSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 46.41 crore), YES Bank (Traded shares: 9.95 crore), ITI Ltd (Traded shares: 8.92 crore), Bank of Maharashtra (Traded shares: 6.31 crore), ONGC (Traded shares: 4.97 crore), Zomato (Traded shares: 4.82 crore) and Suzlon Energy (Traded shares: 4.26 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of ITI Ltd, Saregama India, Avenue Supermart, PTC Industries, Lloyds Metals & Energy, Vijaya Diagnostic and Just Dial were among the stocks that witnessed strong buying interest from market participants.
52 Week high
Over 199 stocks hit their 52 week highs today while 23 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included ITI Ltd, Lloyds Metals & Energy, Apar Industries, Authum Investment, & Infrastructure, Info Edge, Krishna Institute of Medical Sciences and Firstsource Solutions.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Zomato, Tanla Platforms, Angel One, NALCO, Godrej Industries, Ajanta Pharma and Century Texttiles.
Sentiment meter neutral
The market sentiments were neutral. Out of the 4,103 stocks that traded on the BSE on Friday, 1,965 stocks witnessed declines, 2,032 saw advances, while 106 stocks remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
