The stock market concluded the week negatively, with both the Sensex and Nifty ending in the red on Friday.
The Sensex dropped by 703.95 points, or 0.85 percent, finishing at 81,793.16, while the Nifty decreased by 200.25 points, or 0.79 percent, closing at 25,049.85.
Among the 50 Nifty companies, 13 saw gains, while 37 experienced declines. Top gainers included Infosys, ONGC, HDFC Life, Tata Motors, and Wipro, which managed to post positive results despite the overall market decline. Conversely, significant losses were recorded by M&M, Bajaj Finance, Asian Paints, Nestle India, and BPCL, contributing to the market's downturn.
Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, discussed the factors affecting market performance. He noted, "The rupee experienced a weak trading week as it responded to the strengthening dollar index. It fell to the 84.00 level due to the escalation in the Iran-Israel conflict."
He further stated, "Additionally, the opening of China's economy, along with its easing rate policies, has redirected foreign institutional investors (FIIs) toward Chinese markets, leading to continued selling of Indian shares."
With rising global tensions and FIIs offloading Indian equities, market volatility is anticipated to continue, prompting investors to be cautious.
In the last five trading sessions, Indian stock markets have seen a significant reduction in investor wealth, with approximately Rs 13 lakh crore lost, as per Bombay Stock Exchange (BSE) data.
Last week, the total market capitalization of Indian stocks stood at Rs 479 lakh crore, but this week it has fallen to Rs 466 lakh crore, indicating a steep loss of Rs 13 lakh crore in just five trading days.
Both the Nifty and Sensex have encountered ongoing selling pressure, each dropping over 4 percent in the past five trading days. This sustained decline has diminished investor sentiment following a period of strong market performance.
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