Mumbai, September 11 (Daily Kiran) : In Mumbai, the Indian stock market experienced a downturn on Friday, closing in the red amid ongoing tensions in West Asia that affected global markets. The benchmark indices, Sensex and Nifty, both recorded declines, with the Sensex dropping 121 points, or 0.16%, and Nifty falling 0.34% during the trading session.
The BSE Sensex closed at 74,781.76, down from its previous close of 74,902.59, opening the day at 74,309.16 after a significant dip of 593.42 points, or 0.79%. Throughout the day, it reached a high of 74,417.15 but also fell to a low of 74,160.16, recovering 621.59 points by the close.
Nifty 50 opened at 23,270.30, down 207 points, or 0.88%, from its last close of 23,477.80. It peaked at 23,448.10 during the day but also dropped to an intra-day low of 23,231.40, reflecting a significant volatility.
In the broader market, Nifty Midcap and Nifty Smallcap indices fell by 0.26% and 0.58%, respectively. Sector-wise, the most significant losses were seen in Nifty Realty and Nifty Metal, which dropped by 2.7% and 2.3%. Other sectors, including Nifty Auto and Nifty Oil & Gas, also reported declines, while Nifty Private Bank, Nifty Media, and Nifty IT showed some gains.
Among the top performers in the Nifty50 index were HDFC Bank, Dr. Reddy’s Laboratories, Tech Mahindra, HDFC Life, and Wipro, while Hindalco Industries, JSW Steel, Eicher Motors, Tata Steel, and ONGC faced the most significant declines.
Market experts suggest that pressure on Indian equities is likely to persist, particularly as Brent crude oil prices have surged past $100 per barrel, raising concerns about supply disruptions due to escalating tensions in West Asia. This increase in crude prices has pushed global bond yields higher, with the U.S. 10-year Treasury yield nearing 5%, intensifying pressure on equity valuations amidst expectations of a tighter monetary policy from the Federal Reserve.
Additionally, the Indian rupee fell to 95.6 per dollar, compounded by persistent selling from foreign institutional investors. Following Friday’s downturn, Nifty 50 recorded a weekly decline of 2.1%.
Midcap 100 and Smallcap 100 indices also saw respective drops of 0.3% and 0.6%. Private banks outperformed, gaining 0.5%, while the real estate sector lagged, with the Nifty Realty index hitting its lowest level in over two months, significantly impacted by stocks like Godrej Properties and Lodha.
Experts noted that a nationwide strike by bank unions has affected banking operations, as they demand a five-day workweek and changes to the Production-Linked Incentive scheme, with further strikes planned for the end of the month and on October 26.
In the primary market, the NSE announced a price band of ₹1,700-1,785 per share for its upcoming IPO, set to open for subscription on September 17, aiming to raise approximately ₹22,662 crore.
Looking ahead, investors will be closely monitoring India’s CPI and WPI inflation figures for August, the U.S. Federal Reserve’s policy decisions, and key indicators such as U.S. retail sales and industrial production. Crude prices, the rupee, and global yields will also remain critical factors influencing market dynamics.
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