Indian stock markets witnessed a dramatic turnaround on Friday as heavy selling in the final hour of trade erased earlier gains and pushed benchmark indices sharply lower.
The BSE Sensex tumbled 1,092.06 points, or 1.44 per cent, to close at 74,775.74, while the NSE Nifty fell 359.40 points, or 1.50 per cent, to settle at 23,547.75.
The benchmarks had remained in positive territory for most of the trading session, supported by easing concerns over tensions in the Middle East and strength in select information technology stocks. However, sentiment changed rapidly after 3 pm, triggering broad-based selling across sectors and dragging the indices to their day’s lows by the closing bell.
Also Read | SK Hynix enters ‘$1 trillion club’ as AI chip demand fuels stock surge
Market participants attributed the sudden decline to profit-booking after recent gains, continued foreign institutional investor outflows and uncertainty surrounding global geopolitical developments.
Investors turn cautious despite positive global cues
The sharp fall also reflected concerns about the potential economic impact of below-normal monsoon rainfall and inflationary pressures. Traders reduced risk exposure as volatility increased across large-cap stocks.
Selling pressure was visible across financial, metal and FMCG counters, which emerged among the biggest laggards during the session. Technology stocks provided some support earlier in the day but were unable to offset losses elsewhere in the market.
The final-hour slide marked one of the steepest single-day declines recorded by the benchmark indices in recent weeks and underscored the fragile nature of investor sentiment despite supportive global signals earlier in the session.
Also Read | Wipro emerges top Nifty IT gainer after expanding AI alliance with ServiceNow
Analysts noted that caution remains elevated as investors assess a combination of domestic and international risks, including geopolitical tensions, commodity price movements and the outlook for foreign capital flows.
Going forward, market participants are expected to closely track foreign institutional investor activity, crude oil prices, monsoon developments and key macroeconomic indicators for cues on the market’s near-term direction.
{News Ei Samay does not provide investment advice anywhere. Investment and trading in the share market or any field involve risk. Proper study and expert advice are recommended beforehand. This news is published for educational and awareness purposes.}
