The Indian stock market's six-day winning streak came to a halt on Friday, as the benchmark indices closed lower amid profit-taking and renewed global trade concerns. Weakness in FMCG and banking stocks dragged the market down, erasing the positive momentum seen earlier in the week.
The S&P BSE Sensex fell 344.52 points (0.41%) to settle at 84,211.88. The NSE Nifty 50 also retreated, dropping 96.25 points (0.37%) to close at 25,795.15.
Key Market Highlights
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Sensex: Closed at 84,211.88, down by 345 points.
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Nifty 50: Ended the session below the 25,800 mark.
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Market Sentiment: The mood turned cautious as reports emerged that the U.S. is considering a new probe into China's compliance with their 2020 trade agreement. This, combined with comments from India's Commerce Minister about not rushing into restrictive trade deals, prompted investors to book profits after a sustained rally.
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Broader Markets: The broader markets also faced selling pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 indices declining by 0.24% and 0.21%, respectively.
Top Gainers and Losers
While the IT sector saw strong gains, the FMCG and aviation sectors were among the biggest drags on the market.
| Top Gainers |
Top Losers |
| Infosys (+3.81%) |
Eternal Ltd. (-2.88%) |
| HCL Technologies (+2.55%) |
Interglobe Aviation (-2.10%) |
| Tata Consultancy Services (TCS) (+2.21%) |
Eicher Motors (-1.91%) |
| Shriram Finance (+2.07%) |
Bharti Airtel (-1.74%) |
| Axis Bank (+1.74%) |
UltraTech Cement (-1.60%) |
Sectoral Performance
It was a day of mixed sectoral performance, with IT outperforming while FMCG and PSU banks lagged.
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Top Gainers: The Nifty Metal index was the top gainer, closing with a rise of 1.03%. The Nifty Oil and Gas index also ended in the green, up 0.2%.
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Top Losers: The Nifty FMCG index was the biggest laggard, falling by 0.75%. The Nifty PSU Bank index also saw significant selling pressure, declining by 0.74%.
Major News and Market Events
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Trade Deal Jitters: The primary trigger for the market's fall was renewed uncertainty over global trade. Reports of a potential new U.S. probe into China's trade practices, coupled with a cautious stance from the Indian government on a potential India-U.S. trade pact, dampened investor sentiment.
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Institutional Flows: Foreign Portfolio Investors (FPIs) turned net sellers on Thursday, offloading shares worth ₹1,165.94 crore. However, Domestic Institutional Investors (DIIs) continued their strong buying streak, making net purchases of ₹3,893.73 crore. This divergence in institutional flows has been a key theme, with strong domestic buying providing a cushion against foreign outflows.
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Defence Stocks in Focus: Defence stocks were in the limelight after the government approved the procurement of military hardware worth ₹79,000 crore for the armed forces, boosting the outlook for the sector.
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Global Cues: Despite the domestic dip, the market had opened on a positive note, tracking a global rally. This was driven by optimism around a potential lowering of global trade tensions and a rebound in domestic corporate earnings.
Frequently Asked Questions (FAQs)
Why did the stock market fall today?
The market's six-day winning streak ended due to profit-taking and renewed concerns about global trade, specifically a potential new U.S. probe into China's trade deal compliance. Cautious comments from India's Commerce Minister also contributed to the negative sentiment.
Which sectors were the most affected?
The Nifty FMCG and Nifty PSU Bank indices were the biggest losers, each falling by over 0.7%. Weakness was also seen in the broader midcap and smallcap segments.
Which sector was the top performer?
The Nifty Metal index was the top gainer, rising over 1%. The IT sector also saw strong gains, with Infosys, HCL Tech, and TCS being among the top Nifty 50 performers.
What is the current trend in institutional investment?
There is a clear divergence in institutional flows. While Foreign Portfolio Investors (FPIs) have been selling, Domestic Institutional Investors (DIIs) have been buying aggressively, providing strong support to the market.