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Benchmark indices recovered from intraday losses during closing hours to end flat on Friday. Market remained volatile under significant selling pressure through the day, erasing opening gains amid mixed global cues.
The BSE Sensex closed at 52,344.45, up 21.12 points or 0.04 per cent, recovering from day's low of 51,601.11. In opening session, the index hit a high of 52,586.41. The Nifty 50 closed at 15,683.35, down 8.05 points or 0.05 per cent. It hit an intraday high of 15,761.50 and a low of 15,450.90.
The breadth of the market continued to remain in favour of the decliners with 2,031 stocks declining, 1,180 advancing and 141 remaining unchanged on the BSE. As many as 374 securities hit the upper circuit and 284 the lower circuit; 375 hit their 52-week high while 23 touched a 52-week low.
Binod Modi, Head Strategy at Reliance Securities said, “It was an extreme volatile trading day for domestic equites with benchmark Nifty recovering sharply from day’s low. Nifty corrected around 0.8 per cent for the week as slight hawkish stance of federal reserve in latest FOMC meeting weighed on sentiments, which led domestic investors’ wealth to erode by over Rs4 trillion during the week.”
“Notably, weak global cues led Indian equities to see profit booking in last couple of days,” added Modi.
Adani Ports, Bajaj Auto, Hindustan Unilever, Bharti Airtel and Grasim were the top gainers on the Nifty 50 while ONGC, Coal India, JSW Steel, NTPC and UPL were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said, "The market continued to be in the consolidation phase witnessing broad-based selling, taking cues from the Fed policy and mixed global markets.”
“US bond yields have cooled off from its high as global markets seem to have digested the latest Fed comments. China’s plan to sell metal reserves to check recent price hikes has pulled down the sector's sentiments. The market is likely to continue in the consolidation phase for a short while, which can be an opportunity for investors to buy on dips," added Nair.
FMCG in focus
On the sectoral front, FMCG stocks gained focus while metals, PSU Bank, Auto and Realty dragged.
Nifty FMCG ended 0.29 per cent higher in an otherwise volatile session.
Meanwhile, Nifty PSU Bank recorded the highest losses and was down 1.77 per cent at closing. Nifty Metal and Nifty Auto were down 0.91 per cent and 0.75 per cent, respectively. Nifty Realty was down 0.84 per cent.
Mid & small-cap stocks tumble
All broader indices closed in the red as market witnessed across the board selling.
Nifty Midcap 50 was down 1.14 per cent while Nifty Smallcap 50 was down 1.35 per cent.
The S&P BSE Midcap was down 0.70 per cent while the S&P BSE SmallCap was down 0.89 per cent.
Notably, the volatility index softened 3.20 per cent to 14.80.
“Heavy profit booking was seen in midcap and small cap stocks after sharp rally in recent weeks,” said Modi.
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