Stock Market Today: Sensex Crashes More Than 1,170 Points, Nifty Settles Below 23,600

Stock Market Today: Among the top gainers on the BSE were Asian Paints, Nestle India, Titan, and Maruti Suzuki, while Tech M, Axis Bank, IndusInd Bank, M&M, TCS, and L&T were the biggest losers

Stock Market Today: Meanwhile, US markets remained stable on Thursday after the Federal Reserve projected fewer rate cuts in the future

Source : ABPLIVE AI

Indian equity benchmarks, BSE Sensex and Nifty50 suffered another day of heavy losses on Friday. The BSE Sensex plunged 1,176.45 points, closing at 78,041.59, while the Nifty50 dropped 364.20 points to 23,587.50. The Nifty50 slipped below its 200-day moving average for the first time in a month. Both indices registered a weekly decline of around 5 per cent, with domestically-focused small and mid-cap stocks falling by approximately 3.5 per cent.

Among the top gainers on the BSE were Asian Paints, Nestle India, Titan Company, and Maruti Suzuki, while Tech Mahindra, Axis Bank, IndusInd Bank, M&M, TCS, and L&T were the biggest losers.

Market sentiment weakened following the Federal Reserve's forecast of fewer interest rate cuts next year, prompting foreign investors to pull back their investments.

Foreign investors have sold shares worth 122.31 billion rupees ($1.44 billion) this week through Thursday, although they remain net positive in December after two consecutive months of selling. On Thursday, Indian markets saw a broad-based decline, driven by global market turbulence following the US Federal Reserve's hawkish stance on interest rates.

“The strong US dollar and robust US economy are diverting funds away from emerging markets like India. With the 10-year US yield at ~4.52 per cent and sluggish earnings growth in India, FIIs currently lack compelling reasons to invest here,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

He added that FIIs may return once the dollar stabilises, but near-term flows remain under pressure.

Meanwhile, US markets remained stable on Thursday after the Federal Reserve projected fewer rate cuts in the future.

Gold prices were on track for a weekly decline on Friday, as the Federal Reserve’s monetary policy adjustments signalled slower rate reductions, while attention shifted to the upcoming US Personal Consumption Expenditure (PCE) data.

Foreign institutional investors (FIIs) turned net sellers on Thursday, offloading shares worth Rs 4,224 crore, while domestic institutional investors sold shares worth Rs 3,943 crore. FIIs' net short position increased from Rs 1.01 lakh crore on Wednesday to Rs 1.25 lakh crore on Thursday.