Domestic benchmark equity indices Sensex and Nifty50 began down on Friday, dragged by financial, auto, metal, and IT firms, as increased rural and urban inflation in November dimmed prospects of an interest rate drop by the Reserve Bank of India (RBI) at its next policy review.
The BSE Senex index fell 943.10 points, or 1.16 percent, to 80,346.86. The Nifty fell 284.75 points, or 1.16 percent, to 24,263.95. All but Bharti Airtel fell out of the Sensex pack. Steel stocks Tata Steel and JSW Steel led the decline, each down 3%. Private lenders IndusInd Bank and Axis Bank fell by up to 2.5%. NTPC, Bajaj Finserv, Mahindra & Mahindra, and ITC all fell up to 2%.
"The final trading day of the week will be key in determining whether the index closes toward the higher or lower end of this range, thus setting the tone for the coming week. From a technical standpoint, as long as Nifty maintains above the confluence zone of the 50 DEMA and the 89 DEMA around 24400, bulls are likely to maintain the upper hand," said Sameet Chavan, Head Research, Technical and Derivative at Angel One.
Chavan believes that crossing the top end of the recent range above 24700 will be critical to reviving momentum in the broader markets. "Traders should monitor these key levels closely, align their strategies accordingly, and keep an eye on global developments, as they are likely to influence the next phase of market momentum," he stated.
