Market update: Nifty, Sensex trade lower; These 5 factors triggering the fall

The Indian markets were trading lower by 0.7 per cent in the afternoon trade after opening in the red for the fourth straight session this week. The benchmarks Nifty50 and the S&P BSE Sensex continued to trade below 17,600 and 60,000-level. The broader Nifty declined 113 points to 17,645, while the 30-share Sensex was down 0.53% or 315 points to 59, 148 around 12.30 pm on Friday. Financial and IT shares declined the most, while auto and FMCG shares gained. There were several factors that led to fall, however, there were three major triggers that drove market to trade negative on Friday.  

FIIs data 

Foreign Institutional Investors remained net sellers to the tune of Rs 12,415.14 crore till January 20, 2022. Even on January 21, FIIs sold in the Indian market for Rs 4,679.84 crore.  

Global Market:  

Asian markets continued to trade negative in the afternoon trade. Japanese Nikkei 225, Hang Seng Index at the Hong Kong Exchange and Shanghai Composite were trading lower by 0.90%, 0.30% and 0.95% respectively on Friday afternoon. Earlier,  The US markets fell for the fifth consecutive session on Thursday as all major wall Street indices ended in the red for yet another session.  Dow Jones declined 0.89%, Nasdaq Composite ended 1.30% lower, S&P500 slumped 1.10% and Russell 2000 tanked 1.88% in Thursday's closing.  

Covid case:  

India continued to report huge case. In the last 24 hours, India reported more than 3.47 lakh new coronavirus cases (3,47,254). With 2.51 lakh new (2,51,777) recoveries, the country’s active caseload is now at 20,18,825. The total tally of Omicron cases in the country has risen to 9,692, marking a 4.36 per cent increase since yesterday. 

Oil Price:  

OPEC`s share of Indian oil imports fell in 2021 to the lowest in more than a decade despite a 4% rebound in annual crude purchases by the world`s third biggest oil importer, data obtained from industry sources showed, said a Reuters report 

Members of the Organization of the Petroleum Exporting Countries (OPEC), mainly from the Middle East and Africa, saw their share of the pie in India shrinking to 70% in 2021, from a peak of 87% in 2008, a Reuters analysis of the data from 2007 to 2021 showed. 

India`s crude imports rebounded 3.9% to 4.2 million barrels per day (bpd) in 2021, the data showed, but remained below pre-pandemic levels in 2019. 

Rupee:  

The Indian rupee was trading in a narrow range in morning trade on Friday as muted domestic equities and sustained foreign fund outflows negated the impact of easing crude oil prices. 
At the interbank foreign exchange, the rupee opened at 74.50 against the American dollar, then inched higher to 74.48. The local unit also touched an early low of 74.53 against US dollar in the opening session.