The BSE Sensex failed to hold onto early gains and closed about 1% down at 81,688.5 on Friday, its lowest in nearly a month, marking the fifth consecutive session of declines. The domestic market has experienced heightened volatility amid growing concerns over the potential escalation of conflict in the Middle East and its implications for global oil prices. Additionally, caution prevailed ahead of the highly anticipated US jobs report set to be released later in the day. Locally, traders are gearing up for the upcoming Q2 earnings announcements and the Reserve Bank of India's interest rate decision next week, with analysts predicting that the current rate of 6.5% will remain intact.
The 30-share Sensex plunged 1769.19 points, or 2.1 per cent, to end at 82,497.1. The index had fallen by 1,832.27 points to 82,434.02 during the intraday trades. Several stocks faced significant declines, with Mahindra & Mahindra (M&M) recording the largest drop (-3.6%), followed by Bajaj Finance (-3%), Nestle India (-2.9%) and Asian Paints (-2.5%). Conversely, Infosys led the gainers with an increase of 1.3%. For the week, the Sensex slipped about 4.5%. The broader Nifty slid 546.8 points, or 2.12 per cent, to finish at 25,250.1. The 50-share index fell 567 points to an intraday low of 25,230.30.
On the global front, geopolitical tensions between Israel and Iran had a major role to play. This also led to a rise in crude oil prices which added pressure on India. The other factor is the surprise up move in other emerging markets like China. This along with the recent announcement to curb speculation in the derivatives market led to market volatility.
