The domestic stock market witnessed a bloodbath on Friday as the Sensex and Nifty indices buckled under severe selling pressure and closed at 3-month lows. The S&P BSE Sensex declined 874 points to close at 59,331, its lowest level since October 21, 2022 when it ended at 59,307. The NSE Nifty dropped to 17,604 with a massive loss of 288 points.
On the 30-share Sensex platform, major losers included SBI, ICICI Bank, IndusInd Bank, Axis Bank, Kotak Bank, TechM, HDFC Bank, and Reliance. However, some stocks such as Tata Motors, ITC, M&M, UltraCemco, and NTPC ended the day’s trade in the green.
The sharp slump in the Indian market was triggered by an unfavourable research report on Adani Group companies, which dampened investor sentiment. Additionally, claims of high debt of Adani firms by Hindenburg Research in its recent report had a sentimentally negative impact on the banking sector, especially PSU banks. The cautious stance of Foreign Institutional Investors (FIIs) ahead of the Union Budget and Federal Open Market Committee (FOMC) meetings also contributed to the market collapse.
In the broader markets, the BSE midcap index shed 1.2% while the Smallcap index declined 1.9%. Auto stocks such as Tata Motors and Mahindra & Mahindra closed with gains, with Tata Motors rising the most by 6.34%.
Traders are now gearing up for the next two big catalysts; the interest rate decision from the Federal Reserve on February 1 and the Union Budget for 2023-24, which will also be presented on the same day.
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