On Friday, India’s main stock markets finished lower, marking the first drop of 2025 after two days of gains. The decline was mainly due to falls in big companies in finance and IT as investors became cautious before the upcoming earnings announcements next week.
The benchmark BSE Sensex dropped by 720.60 points, which is 0.90%, ending the day at 79,223.11. The Nifty 50 index also fell by 183.90 points or 0.76%, closing at 24,004.75.
Vinod Nair, the Head of Research at Geojit Financial Services, indicated that the market is in a “sell-on-rally” mode due to a strong U.S. dollar and high valuations, leading to a shift towards investing in various assets. He mentioned that reducing jobless claims in the U.S. and possible policy changes suggest that the Federal Reserve may not lower interest rates anytime soon. Looking forward, the market is expected to focus on the third-quarter earnings, hoping for an improvement compared to the previous quarter.
In the U.S., stock markets bounced back on Friday with positive news about Federal Reserve rate cuts and business-friendly policies. The Dow Jones picked up 339.86 points or 0.80%, while the S&P 500 climbed by 73.92 points or 1.26%. The Nasdaq also rose by 340.88 points or 1.77%.
European stocks, on the other hand, ended in the red, affected by losses in luxury goods and spirits companies. The STOXX 600 index dropped by 0.5% amid light trading after the New Year holidays.
From a technical perspective, the Nifty index couldn’t surpass the 50 EMA on daily charts, leading to a correction. However, Rupak De from LKP Securities noted that sentiment remains positive as the index stayed above 24,000. On the upside, if it passes 24,220, it could reach 24,500. Conversely, dropping below 24,000 could push it down to 23,700.
Most Active Stocks
In terms of trade value, the most active stocks included ITI Ltd, Avenue Supermart, HDFC Bank, Tata Motors, Reliance Industries, ITC, and ICICI Bank.
Most Traded by Volume
The highest traded stocks by volume were Vodafone Idea, YES Bank, ITI Ltd, Bank of Maharashtra, ONGC, Zomato, and Suzlon Energy.
Stocks With Buying Interest
Demand was high for stocks like ITI Ltd, Saregama India, Avenue Supermart, and PTC Industries.
52-Week Highs and Lows
199 stocks reached their 52-week highs, including ITI Ltd and Lloyds Metals. Meanwhile, 23 stocks hit their 52-week lows.
Stocks Facing Selling Pressure
Stocks like Zomato, Tanla Platforms, and Ajanta Pharma saw significant selling.
Market Sentiment
Overall, market sentiment was neutral. Of the 4,103 stocks on the BSE, 1,965 declined, while 2,032 advanced, and 106 remained the same.
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