It was another weak session for the Indian stock market, as key indices remained lower for the fifth straight day on Friday, January 9, with investor sentiment staying fragile amid heightening geopolitical tensions and global trade-related uncertainties, which continue to weigh on markets.
Both key averages opened the session lower, with the sell-off deepening further, triggering another 193-point, or 0.75%, fall in the Nifty 50 to close at 25,683. The S&P BSE Sensex ended at 83,574, down 0.72% from the previous close.
For the week, the Nifty 50 fell 2.45%, its biggest weekly drop in over three months, while the Sensex declined 2.55%, marking its largest five-day fall since late September.
Meanwhile, the broader markets also faced the pressure, with the Nifty Midcap 100 cracking 0.8% and the Nifty Smallcap 100 index plunging even more at 2%.
Barring Nifty Oil & Gas and Nifty IT, all major sectoral indices closed deep in the red, led by Nifty Realty with a 2.16% drop, followed by Nifty Chemicals and Nifty Consumer Durables, each falling 1.5%.
Other indices, including Nifty FMCG, Nifty Auto, and Nifty Pharma, tanked 1.13%, 1.10%, and 0.86%, respectively.
Vinod Nair, Head of Research, Geojit Investments Limited, said, “The Indian market remains in a consolidation phase due to weak global cues, rising global bond yields, and persistent FII outflows, all of which weigh on sentiment ahead of the positive Q3 earnings outlook. Domestic risk-off sentiment has intensified amid uncertainty surrounding US-India tariff negotiations and escalating geopolitical tensions.”
“Nevertheless, domestic GDP growth is expected to remain strong, and Q3 results should indicate a recovery led by midcaps, potentially stabilizing investor sentiment. Despite these heightened geopolitical headwinds, the market is likely to trade within a range with a mixed bias,” Vinod Nair further stated.
Elecon Engineering leads Nifty 500 losers
Elecon Engineering shares were the top laggard among Nifty 500 stocks, sinking 16.2% to 422 apiece, as investors reacted to the company’s December quarter earnings.
Indian Energy Exchange was another major loser, falling 8% to 138.2, after the Electricity Appellate Tribunal (APTEL) scheduled January 19 as the next hearing date for the market coupling case, CNBC TV-18 reported.
Manappuram Finance also came under selling pressure, dropping 7.5% to 286.35 following reports that the Indian central bank raised objections to the Bain deal.
Meanwhile, the sell-off in Force Motors accelerated further, with the stock falling another 7% to 18,700, extending its losing streak to five straight days and a cumulative decline of 11.82%.
Although Transformers & Rectifiers showed momentum during the first half of the session, following yesterday’s rout, the stock could not sustain gains and fell another 6.6% to 272 apiece.
Other Nifty 500 constituents, including Tejas Networks, Ather Energy, Siemens Energy India, Godrej Properties, and Reliance Infrastructure, closed with losses of up to 5%. According to Trendlyne data, nearly 75 stocks ended the day with losses exceeding 3%.
National Aluminium, Hindustan Zinc and others shine in an otherwise weak market
Despite a broad market sell-off on Friday, a handful of stocks managed to buck the trend. National Aluminum topped the Nifty 500 gainers, closing 4.6% higher at 348 apiece.
Hindustan Zinc also rebounded from a two-day rout, with the stock recovering 3% to 608 apiece.
Other top Nifty 500 performers included Leela Palaces & Hotels, Oil India, Coforge, Krishna Institute of Medical Sciences, Ashok Leyland, Coromandel International, Petronet LNG, CCL Products India, Asian Paints, and Ipca Laboratories, all of which closed with gains between 1.5% and 2.7%.
Disclaimer, We advise investors to check with certified experts before making any investment decisions.
