Mumbai: Breaking the two-day upward trend, benchmark indices Sensex and Nifty finished lower on Friday, primarily due to weak global indicators and diminishing prospects for a rate reduction by the US Federal Reserve in December. The 30-share BSE Sensex fell by 400.76 points or 0.47 percent, closing at 85,231.92. During the session, it dropped as much as 444.84 points or 0.51 percent to 85,187.84. Meanwhile, the 50-share NSE Nifty decreased by 124 points or 0.47 percent to settle at 26,068.15, having previously surged over 1 percent or 282 points to exceed 26,000 in the last two sessions. Among the firms listed on Sensex, Tata Steel, HCL Tech, Bajaj Finance, Bajaj Finserv, Bharat Electronics, and Eternal were the significant losers.
Conversely, Maruti, Mahindra & Mahindra, Tata Motors Passenger Vehicles, and ITC emerged as gainers. Analysts noted that better-than-expected US non-farm payroll data reduced the likelihood of a rate cut by the US Federal Reserve in December. Concerns regarding a potential bubble in AI-related stocks also negatively impacted investor confidence globally. “Indian markets became volatile and closed lower, mirroring the general decline observed in Asian equities following the positive US non-farm payroll data, which lessened expectations for a December rate cut. Additionally, profit-booking after a brief two-day rise contributed to the cautious atmosphere, resulting in all key indices turning negative, with mid and small caps experiencing more significant corrections,” stated Vinod Nair, Head of Research at Geojit Investments Limited.
The BSE smallcap and midcap indices both fell by 1.30 percent. All sectoral indices finished lower, with metals decreasing by 2.35 percent, followed by real estate at 1.89 percent, capital goods at 1.79 percent, commodities at 1.46 percent, and industrials at 1.43 percent.