Stock Indices Fall on Profit Accounting, Covid Concerns, Oil Stocks Fall

New Delhi:

Key indices rose in the first few minutes of the day’s session, but quickly gave up gains and then moved into negative territory as recent increases sparked a wave of profit-taking.

Globally, stocks were mostly higher in Asia on Friday after a large rally on Wall Street. Likewise, European equities opened more firmly.

Domestically, volumes were a little higher than the two previous sessions.

At the sector level, capital goods were the main gainers, while the oil and gas, banking, automotive, IT, health and FMCG indices lost the most.

As a result, the S&P BSE Sensex traded at 57,696.46 points, down 1.31% from its previous close of 58,461.29 points.

The larger 50-stock Nifty on the National Stock Exchange (NSE) traded in the red, down 1.18% to 17,196.70 points.

“Nifty corrected after rising for two days, going against the global trend. The expected decline ratio, however, remained positive,” said Deepak Jasani, head of retail research at HDFC Securities.

“As sales on rallies (especially in large caps) continue, the broader market appears to have performed well,” he added.

According to Vinod Nair, head of research at Geojit Financial Services: “After a positive opening, the benchmarks have abandoned any gains driven by heavyweight losses ahead of the RBI meeting next week.

Investors were also cautious after India reported cases of Omicron. However, global stocks traded with slight gains after Thursday’s sell-off driven by fears of the new Covid variant and the Fed Chairman’s comment on the bond buying program. “

Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services, said: “Going forward, market volatility is expected to continue given the uncertainty surrounding the new Omicron variant and the reduction in market price. Fed. needs, etc., the news circulating around it would keep the markets unpredictable.

“On the other hand, investors would keep an eye on the RBI policy decision expected next week, in which the status quo should be maintained amid the emergence of the new variant of Covid.”


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Felix J. Dixon