Declining for the fourth straight session this week, the Indian markets closed on negative note on Friday, eroding around Rs 7 lakh crore of the investors’ wealth. The BSE Sensex slipped over 400 points, while Nifty50 closed above 17600-mark first time since last 10 sessions.  

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While the broader markets underperformed the benchmarks as both Nifty mid and small cap slipped by over 2 per cent. Similarly, Nifty Bank dragged the Nifty index by around 1 per cent at close. 

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Of 50 scrips on Nifty, 15 closed in the green, while 35 in the red at close. Bajaj Auto closed a top gainer, surging by almost 4 per cent, followed by HUL on the back of good Q3 numbers grew over 3 per cent. On the contrary, Bajaj Finserv, amid mute Q3 earnings, slumped over 5 per cent at the close. 

Almost all sectoral indices closed in the red, with Nifty IT and Metal concluding nearly 2 per cent lower, while Nifty FMCG became the only index to close positive, led by HUL gains. The broader market index was dented mainly by Realty and Media, as each slipped by over 2 and 3 per cent respectively. 

On the weekly basis, Nifty50 snapped 4-week rally to post worst closing this week since November 28, 2021. While Nifty Bank, Nifty Midcap, Nifty Small cap each snapped 3-week rally this week. Nifty IT fell by 7 per cent this week, followed by Nifty Pharma down 5 per cent this week. 

“Indian equity markets corrected this week in line with the global market sell-off. The rise in US bond yields and the expected tightening of monetary policy by Central Banks is weighing on investor sentiments. The 10-year US treasury yield moved higher this week, hitting 2 year high,” Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities Ltd said. 

He added, “Crude oil prices continue to march forward with Brent crude inching closer towards the $90 /barrel levels. FII turned out to be a net seller in the January month till date in India.” 

“Inflationary pressure, monetary policy tightening, rising bond yields, higher crude oil prices are some key challenges for the global markets. In addition to global factors, the domestic markets would track the Q3FY22 results, management commentary, and Union Budget,” Chouhan added. 

Chandan Taparia Vice President | Analyst-Derivatives Motilal Oswal Financial Services Limited said, “Nifty index opened gap down and headed to it crucial support of 17500 zones. It moved in a range bound manner with weakness, but slight recovery was seen towards the end. It finally closed the day with losses of around 140 points, after taking support near to its 50 DMA.” 

“It formed a Doji candle on daily scale after the weakness of last three sessions and has been forming lower lows from the last four sessions. It formed a Bearish candle on weekly scale and wiped of all its previous week’s gains,” Taparia said.  

“It negated its higher lows formation of the last 3 weeks and taken a pause in positive momentum on medium term perspective. Now till it remains below 17700 zones, weakness could be seen towards 17500 and 17350 whereas hurdles exist’s at 17777 and 17950 marks,” the analyst said.