Weekly market wrap: Sensex Nifty fall over 4% each; Realty index cracks 8%

Amid relentless sell-off by FIIs and escalating geo-political rift, equities ended the week to October 4 sharply lower. The frontline indices cracked over 4 per cent each recording the worst fall since June 2022.

In trade on Friday, Nifty ended with a drag of 0.93 per cent at 25,015 levels, while the 30-stock Sensex slipped nearly 810 points or 1 per cent to 81,688.5 levels.

Broader markets, relatively, outperfomed the headline indices, with Midcap and Smallcap indices ending 3 per cent and 2.51 per cent, respecitvely.

Market analysts see nervousness on the Street for some more time amid highly volatile global markets. India VIX  extended previous day's gains and ended moving higher by 7.27 per cent.

Nifty hit its all-time high levels on September 26 of 26,250.9 levels and since then has been constant sell-off for the past five sessions.

Rupak De, Senior Technical Analyst at LKP Securities said, "The Nifty witnessed a bear attack for the second consecutive day. Sustained trades below key levels triggered a correction towards 25,000. The sentiment has turned extremely weak, with higher levels being used as selling zones. On the lower end, the next support is seen at 24,750, while on the higher end, resistance is visible at 25,300."

In case oil prices continue to spike a higher inflation scenario going ahead could further delay the prospects of a rate cut by the RBI, noted Prashanth Tapse- VP (Research), Mehta Equities.

Sectoral gainers and losers

Nifty Realty and Nifty Auto slipped the most by 8 per cent and 6 per cent, respectively. Furthermore, all the other sectors also recorded correction between 1-6 per cent.

Stock market outlook for next week to October 11

The market direction going ahead will be directed by how the Iran-Israel war pans out, RBI MPC meet outcome and the US non-farm payroll data due to be released later today. FII acition and crude price trajectory will be another triggers which D-Street will factor in.