New Delhi: Sensex and Nifty plummeted at the start of trading on Friday due to investors selling to lock in profits following recent record-breaking gains, and also in response to global sell-offs. Heavy selling pressure in key stocks such as Reliance and ICICI Bank negatively impacted investor confidence.
In morning trading, the BSE Sensex dropped 640.13 points to reach 81,227.42. The NSE Nifty dropped by 271.40 points and reached 24,739.50. Both indexes dropped by 1 pc in the early trading session. Tata Motors, Maruti Suzuki India, Tata Steel, JSW Steel, Larsen & Toubro, Adani Ports, Tech Mahindra, NTPC, and Tech Mahindra were the underperformers among the Sensex pack.
HDFC Bank, Hindustan Unilever, Asian Paints, Nestle India, and ITC were some of the companies that saw an increase in value. Money inflows into the market have played a bigger role in sustaining the rally in India than fundamental factors. The rally cannot last without underlying support. It is unknown if the buy on dips strategy will be successful again this time. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggested that due to elevated valuations, it may be wise to consider taking some profits, especially in mid and small cap stocks.
Brent crude, the global oil benchmark, increased by 0.78 percent to reach USD 80.14 per barrel. Tokyo, Shanghai, Hong Kong, and Seoul were experiencing a decrease in trading activity in Asian markets. The US stock market saw a decline on Thursday of lowing a previous rally to a record high.
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