Ending the two-day rally, benchmark indices Sensex and Nifty closed lower on Friday owing to weak global trends and fading hopes of a rate cut by the US Federal Reserve in December.
The 30-share BSE Sensex plunged 400.76 points or 0.47 per cent to settle at 85,231.92. During the day, it went down 444.84 points or 0.51 per cent to 85,187.84.
The 50-share NSE Nifty dropped 124 points or 0.47 per cent to 26,068.15. The index had rallied over 1 per cent or 282 points to trade above 26,000 in the previous two sessions.
Among Sensex firms, Tata Steel, HCL Tech, Bajaj Finance, Bajaj Finserv, Bharat Electronics and Eternal performed poorly, while Maruti, Mahindra & Mahindra, Tata Motors Passenger Vehicles and ITC were among the gainers.
Analysts said better-than-expected US non-farm payroll data dampened expectations of a December rate cut by the US Federal Reserve. Worries about a bubble in AI-related shares also dampened investor sentiment across global markets. While Asian markets ended sharply lower, European markets were also trading in the red.
Indian markets turned volatile and settled lower, reflecting the broader decline seen across Asian equities after better-than-expected US non-farm payroll data dampened the expectation of a December rate cut. Profit-booking after a brief two-day uptrend added to the cautious tone, pulling all key indices into the red, with mid and smallcaps facing sharper corrections.
The BSE smallcap and midcap indices declined 1.30 per cent each. All sectoral indices ended lower. Metal dropped 2.35 per cent, followed by realty (1.89 per cent), capital goods (1.79 per cent), commodities (1.46 per cent) and industrials (1.43 per cent). A total of 2,898 stocks declined while 1,278 advanced and 162 remained unchanged on the BSE.
On the weekly front, the BSE benchmark jumped 669.14 points or 0.79 per cent, and the Nifty went up by 158.1 points or 0.61 per cent. Foreign Institutional Investors (FIIs) bought equities worth Rs 283.65 crore on Thursday, according to exchange data. Domestic institutional investors (DIIs) also bought stocks worth Rs 824.46 crore.
Also read: Sensex up 446 points on fresh foreign fund inflows
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