Equity markets closed lower on Friday following a volatile trading session, breaking a two-day positive streak due to weak global signals and uncertainty surrounding US–India trade talks. The S&P BSE Sensex dropped over 400 points to settle at 85,231, while the NSE Nifty50 maintained levels above 26,000 amidst widespread sectoral weakness.
Market volatility surged during the day, causing most broader indices to turn negative. Mid- and small-cap stocks experienced significant declines as traders took profits following a recent upturn. Notably, metal and financial shares led the Nifty50’s decline, with JSW Steel, Hindalco, Tata Steel, Bajaj Finance, and HCLTech among the top laggards. On the broader NSE spectrum, Maruti, Tata Consumer Products, Max Healthcare, IndiGo, and M&M also closed notably lower.
Vinod Nair, Geojit Financial Services’ Head of Research, attributed the market’s loss of momentum to the weakness in Asian markets. He highlighted that Indian markets became volatile and closed lower in line with the broader decline in Asian equities, triggered by the US non-farm payroll data exceeding expectations, which reduced the likelihood of a December rate cut. Nair noted that profit-taking following a brief uptrend and concerns over soft manufacturing PMI data, a weakening INR, and potential delays in India–US trade talks further dampened market sentiment.
Investors are now awaiting global macroeconomic data and clarity on trade negotiations to gauge market direction, with analysts anticipating continued choppy conditions in the short term.