Indices snap 5-day winning run: Sensex ends over 600 points lower

Benchmark indices Sensex and Nifty ended with losses for the first time in six days as a selloff in the US markets overnight dented investor sentiment. US stocks fell after its economy grew at a slower pace in the first quarter but inflation remained stubbornly high, dimming optimism around ‘soft landing’. The Dow Jones fell 1 per cent on Thursday. 
 

The 30-share BSE Sensex declined 609 points or 0.82 per cent to settle at 73,730.16. During intraday, it lost as much as 723 points or 0.97 per cent to 73,616.65. A positive opening in the European market and an uptick in the US futures market helped the domestic markets recoup some losses.
 

Rising global crude prices, a depreciating rupee and persistent foreign fund outflows further weighed on sentiment, traders said. Foreign portfolio investors (FPIs) sold shares worth Rs 3,405 crore, while domestic institutions provided buying support to the tune of Rs 4,357 crore.
 

The Nifty 50 index declined 150 points, or 0.67 per cent, to 22,420. Despite Friday’s losses, the BSE benchmark advanced 641.83 points or 0.87, and the NSE Nifty climbed 272.95 points or 1.23 per cent for the week.
 

"The fall was on expected lines as both the benchmark indices had rallied for five straight sessions, and profit-taking has been due for some time. Correction is also attributed to global factors after the Japanese Yen fell to a new 34-year low and disappointing US data pushed its benchmark yields to over 4.7 per cent, thus worsening hopes of an interest rate cut in the medium term," said Prashanth Tapse, Senior VP (Research), Mehta Equities.

The market saw a lot of stock-specific action. Bajaj Finance was the biggest drag on the Sensex, as it skid nearly 8 per cent after the company's March quarter earnings failed to cheer investors. Bajaj Finserv also declined over 3 per cent.
 

IndusInd Bank, Nestle, Kotak Mahindra Bank and Mahindra & Mahindra were among the other laggards. Meanwhile, Tech Mahindra jumped over 7 per cent after the IT services company's CEO outlined an ambitious three-year roadmap to accelerate revenue growth and lift margins.
 

Wipro, ITC, UltraTech Cement, Titan and Axis Bank were among the gainers. In the broader market, the BSE midcap gauge jumped 0.83 per cent, and the smallcap index climbed 0.27 per cent.  
 

Overall market breadth was mixed, with 1,920 stocks advancing and 1,866 declining on the BSE. 
 

The combined market capitalisation of all BSE-listed firms stood at Rs 404 trillion.

Among the indices, bankex declined 0.70 per cent, financial services (0.68 per cent), teck (0.26 per cent), auto (0.25 per cent) and telecommunication (0.15 per cent).

Energy, healthcare, services and power were among the gainers.

"The unexpected surge of the US core PCE price index, accompanied by weaker-than-forecasted GDP growth and Treasury yield spikes, impacted market sentiment. Investors are concerned about the possibility of a looming recession in the US.

Indian market lagged behind its Asian and European peers due to worries over lofty valuations and lacklustre Q4 earnings, fuelling expectations of downward revisions for FY25 earnings," said Vinod Nair, Head of Research, Geojit Financial Services.

In Asian markets, Seoul, Tokyo, Shanghai and Hong Kong settled in the positive territory.

Global oil benchmark Brent crude climbed 0.31 per cent to USD 89.29 a barrel.

The rupee declined 8 paise to close at 83.36 (provisional) against the US dollar on Friday.