New Delhi | Indian equity markets closed under heavy pressure on Friday, with benchmark indices Sensex and Nifty ending more than one percent lower amid sustained selling. Rising geopolitical uncertainty at the global level and a stronger US dollar made investors cautious, weakening overall market sentiment. During the trading session, investor wealth declined by nearly ₹5 lakh crore.
The BSE Sensex fell 961.42 points, or 1.17 percent, to close at 81,287.19. During intraday trading, the index touched a low of 81,159.15 after sliding by nearly 1,089 points. Meanwhile, the NSE Nifty declined 317.90 points, or 1.25 percent, to settle at 25,178.65, while it slipped to 25,141.30 during the session.
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According to market capitalization data, the total valuation of BSE-listed companies fell from around ₹468.5 lakh crore in the previous session to about ₹463 lakh crore. This translated into an erosion of nearly ₹5 lakh crore in investor wealth in a single day, reflecting growing market volatility.
Shares in the banking and financial services sector were under the most pressure. Both the Nifty Bank and Nifty Financial Services indices fell by more than one percent. Auto, metal and FMCG stocks also declined between 1 and 2 percent, further weighing on overall market sentiment.
However, IT sector stocks showed marginal strength. The Nifty IT index rose about 0.2 percent, although the sector remains under pressure in February. Analysts believe that artificial intelligence-driven technological changes are raising concerns among investors about the impact on traditional business models. The IT index has fallen nearly 20 percent in February, with weakness in global technology stocks also affecting domestic sentiment.
In global markets, Asian markets weakened by about 0.7 percent, while US markets also ended in negative territory overnight. Despite strong quarterly results from US-based Nvidia, the stock witnessed selling pressure as investors expressed concerns over high valuations.
In the commodity market, crude oil prices softened slightly after approaching a seven-month high in recent days. The decline came amid reports of indirect US-Iran talks. Analysts believe easing concerns over supply disruptions in the Middle East helped reduce pressure on oil prices.
Market experts say the domestic stock market is currently trading in a range-bound zone and is awaiting a major trigger. Technical indicators suggest that 25,400 is an important support level for the Nifty, while a close above 25,600 could signal fresh upward momentum.
Overall, geopolitical tensions, weakness in global markets and concerns over high valuations continued to keep selling pressure on Indian equities. Experts advise investors to focus on the fundamental performance of companies rather than being influenced by short-term market fluctuations.
