Mumbai, Jan 25 Bulls made several attempts to bounce back but the overall sentiment remained weak as Nifty slipped for the third consecutive week amid geo-political uncertainties.
It was, however, an eventful week on both global and domestic fronts but despite the developments, there was no significant change in the price structure.
“Aside from Tuesday’s strong sell-off from higher levels, the week saw choppy sessions, eventually ending with a modest loss of around half a per cent, just below 23,100,” said Rajesh Bhosale from Angel One.
While the broader markets were under pressure, the sell-off in the benchmark index showed signs of slowing down.
“This could be a precursor as we approach the budget week, a key event that often sets the market tone, either continuing the current trend or signalling a reversal,” according to Bhosale.
Indian stock markets remained volatile on Friday as selling pressure at higher levels weighed on benchmark indices.
At the closing bell, the BSE Sensex was at 76,190.46, down 329.92 points or 0.49 per cent, while the Nifty 50 slipped 113.15 points or 0.49 per cent to finish the day at 23,092.2.
Both indices touched intra-day highs of 76,985.95 and 23,347.30, respectively, before losing momentum. Indian equities ended a volatile session on a weak note as global optimism failed to lift domestic markets.
According to Siddhartha Khemka of Motilal Oswal Financial Services Ltd, broader market indices this week were under heavy selling pressure as Nifty midcap100 lost 1.6 per cent and Nifty smallcap100 plunged 2.4 per cent.
The FPIs offloaded equities worth Rs 5,463 crore on Friday, pushing their cumulative outflows for the month to Rs 66,322 crore.
In global developments, the Bank of Japan hiked interest rates by 25bps to 0.5 per cent, bringing its policy rate to its highest level since 2008, as it seeks to normalise its monetary policy.
“On the other hand, US' benchmark S&P 500 rose to a record high, while the other two indices gained for the fourth day in a row after US President Donald Trump called for lower interest rates and cheaper oil prices,” said Khemka.
According to market experts, traders should closely monitor these levels and adjust their strategies accordingly.
“In the midcap space, we saw mixed performance, with some days experiencing sharp sell-offs and others seeing strong rallies. Such volatile movements and themes are likely to continue, so traders need to remain agile in their stock selection,” said experts.
Domestic equities are expected to trade within a broad range with some volatility amidst the Q3 result season, unfolding of US President Trump’s economic policies and the Union Budget on Saturday (February 1).
PSU and capex themed stocks such as railway, defence, capital goods will be in focus ahead of the Budget, said experts.
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