Market Update

Indian equity markets settled sharply lower on Friday, driven by escalating tensions in West Asia and rising crude oil prices. Weak global markets, continued foreign fund outflows, and a fall in the rupee further dampened investor sentiment.

Key Market Performance

• The Sensex plunged 1,579.82 points or 2 percent to 74,454.60 during intra-day trade, before recovering marginally to settle 1,470.50 points or 1.93 percent lower at 74,563.92.
• The Nifty declined sharply, dropping 488.05 points or 2.06 percent to close at 23,151.10.
• For the week, the Nifty dropped 5.3 percent, its biggest decline since June 2022, while the Sensex fell 5.5 percent, marking its worst weekly fall since May 2020.

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Market Outlook

Analysts at Bajaj Broking noted that the sharp correction has pushed the market into oversold territory, raising the possibility of a short-term pullback. However, clear reversal signals are yet to emerge.

Technical Indicators

• The 14-period RSI is below 30, indicating oversold conditions.
• Key support on the downside is placed around the 22,700–22,400 zone.

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Sectoral Performance

All 16 major sectoral indices ended the week in the red. The broader markets also remained under pressure, with the Nifty Smallcap100 and Nifty Midcap100 indices falling 2.5 percent and 2.65 percent, respectively.

Brokerage Views

• Ajit Mishra, SVP – Research at Religare Broking, noted that the market has struggled to hold key levels despite oversold conditions.
• Nagaraj Shetti of HDFC Securities said the broader trend remains sharply negative, with a higher possibility of Nifty showing a minor pullback from near the lows of around 22,900 by next week.