Indian stock markets eased on Friday, with both the Sensex and Nifty dropping about 0.4% as investors reduced exposure near record highs.
Market Overview
The BSE Sensex closed at 85,041.45, down 367 points, while the NSE Nifty 50 ended at 26,042.3, slipping just below the 26,050 level. The decline erased most of the weekly gains, leaving the Sensex up only 0.1% and the Nifty up 0.3% for the week.
Key Movers
Among the heavyweights, the following stocks fell between 1% and 1.5%:
- Bajaj Finance
- Asian Paints
- Eternal
- Sun Pharma
- Tech Mahindra
Investor Sentiment
Trading volumes were thin, especially as the year draws to a close. Investors appear cautious ahead of upcoming earnings reports, leading to broad profit‑taking. Large‑cap stocks lagged behind mid‑ and small‑caps, though metals and consumer‑durable stocks showed some resilience.
Global Context
Across Asia, markets rallied, with Japan’s Topix hitting a record high and South Korea’s index up about 0.6%. China’s blue‑chip index rose 0.27%, keeping the MSCI Asia‑Pacific index near its highest level since November.
Oil Prices
Crude oil was mostly unchanged. Brent edged up 12 cents to $62.36 a barrel, and U.S. WTI rose 19 cents to $58.54, as traders weighed fresh geopolitical risks and limited post‑Christmas activity.
Rupee Moves
The Indian rupee weakened, closing at 89.86 per U.S. dollar, pressured by falling equities and continued foreign fund outflows. The dollar index held steady, up 0.10%.
Takeaway
Thin trading and foreign outflows kept risk appetite low, prompting investors to trim positions in major indices and several blue‑chip stocks.
Disclaimer
Remember, this is my view, not a prediction. Do your own research and consider your personal risk tolerance before making any investment decisions.