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Stock indices in India witnessed another day of bloodbath, with Sensex and Nifty shedding about 1.5 per cent each on the last day of this week.
Sensex closed at 78,041.59 points, down 1.5 per cent or 1,176 points, while Nifty closed at 23,587.50 points, down 364.20 points or 1.52 per cent today. All sectoral indices were deep in the red today, with Nifty IT, PSU bank, auto, and realty were the top losers. During the week, Sensex and Nifty shed around 5 percentage points each, data showed. "As anticipated, declines in IT and banking heavyweights are adding to the market pressure, signaling potential challenges ahead," said Ajit Mishra - SVP, Research, Religare Broking. "Traders should adjust their positions accordingly, maintaining a strong focus on risk management." Notably, the indices slumped on all five sessions this week, attributable to selling by foreign portfolio investors and coupled with indication from the US Federal Reserve of fewer rate cuts next year than was anticipated. The widened trade deficit for November has also dampened the domestic sentiment. India's merchandise trade deficit for November stood at USD 37.84 billion, driven by a surge in imports relative to exports. This is reportedly the highest monthly trade deficit on record. "The negative response to the Fed's commentary yesterday will be temporary. Recovery led by largecaps is possible in the near-term," said V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Last week, Indian equity markets rebounded sharply in the second half on Friday, managing to end the week with marginal gains. The Sensex remains nearly 6,000 points below its all-time high of 85,978 points. Going ahead into the next week, the markets will react to the commentary made in the to-be-released RBI policy minutes. (ANI)
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