The equity benchmarks on Friday gave up some of the losses but still ended lower, as investors booked profits after a six-day rally that lifted key indices to fresh 52-week highs.
The Sensex slipped 344.52 points or 0.41 percent to settle at 84,211.88. During the session, it declined 599.25 points or 0.70 percent to 83,957.15. The Nifty ended 96.25 points or 0.37 percent down at 25,795.15.
From the day’s low, Sensex recovered about 250 points while the Nifty settled near 25,800.
Bharti Airtel, ICICI Bank, Bharat Electronics and Sun Pharma were among the gainers.
Hindustan Unilever dropped the most by 3.2 percent. UltraTech Cement, Kotak Mahindra Bank, Adani Ports, Titan, HDFC Bank and Axis Bank were also among the laggards.
Key reasons
1) Positive global cues: Support from positive global cues helped markets cut losses. US stock futures traded higher, while major Asian indices, including South Korea’s Kospi, Japan’s Nikkei 225, Shanghai Composite and Hong Kong’s Hang Seng, ended in the green.
2) Buying at lower levels in key sectors: Buying in select metal, realty, oil & gas and defence shares also aided the recovery from the day’s low.
3) Decline in volatility index: The India VIX, a measure of market volatility, eased 1.2 percent to 11.59, indicating improved sentiment.
Technial analysis
"We maintain a bullish view despite the ongoing corrective phase and suggest retaining a positive bias as long as Nifty holds above 25,600. However, traders should remain selective, focusing on sectors showing relative strength, particularly large-cap and quality mid-cap stocks," said Ajit Mishra, SVP – Research, Religare Broking Ltd.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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