Despite strong cues from global markets, Indian stock markets remained under pressure on Friday. Due to heavy selling in the last hour of trading, Sensex fell 1,092 points to close at 74,775, while Nifty fell 359 points to close at 23,547. Bank Nifty also fell 614 points and closed at 54,239.
After 2:30 pm, sudden selling pressure was seen in the market, due to which Nifty fell by about 400 points. The sharp 8% jump in India VIX clearly reflects the growing nervousness among investors. However, the rupee showed signs of recovery and crude oil prices remained below $95 per barrel.
IMD’s weak monsoon forecast further increases the pressure
One of the major factors pressurizing the market was the revised monsoon forecast by the IMD. The Meteorological Department has reduced the monsoon forecast from 92% to 90%. Fears of below normal rainfall have increased concerns about the agriculture sector, rural demand and inflation – these sentiments were clearly reflected in the market sentiment
Buying in IT stocks; rest of the market under pressure
IT shares showed strength in Nifty 50 index. Infosys gained around 2.45%, while Tech Mahindra, HCL Tech and Wipro also registered gains of up to 2%. On the contrary, selling pressure dominated in leading stocks like Interglobe Aviation, Bajaj Auto, Tata Steel and Power Grid.
Huge fluctuations in response to earnings results
Many stocks witnessed vigorous trading activity after the announcement of quarterly corporate earnings. Shares of Tribhovandas Bhimji Zaveri jumped nearly 20%, while Kernex Microsystems gained 15%. In contrast, Bharat Dynamics declined by nearly 8% and Netco Pharma declined by a sharp 11%. These stocks were hit by weak financial results and negative outlook issued by brokerage firms.
Huge fluctuations in small-cap stocks
Among the biggest losers were Praj Industries, Enviro Infra, Avanti Feeds and MCX, which fell 5% to 8%. In contrast, among the top gainers, Wockhardt saw a rise of about 16%. Netweb Technology, Tega Industries and Gujarat Gas also saw good growth.
Why market weakness?
– Today’s selling is a bit surprising.
– Signals from global markets are positive.
– US markets have been making new records for the last two days.
– Except China, all other Asian markets are trading with gains.
– Dow futures also look strong.
