Stock Market News: On Friday, the domestic benchmark indices, Nifty 50 and Sensex, marked their longest weekly decline since August 2023, exacerbating a widespread selloff as foreign investors continued to withdraw and disappointing corporate earnings dampened sentiment further.
The Sensex plummeted by 662.87 points, closing at 79,402.29, while the Nifty 50 declined 218.60 points, finishing at 24,180.80.
The Nifty 50 was considered overbought on September 27 when it reached record highs. Since then, the index has decreased by 8%, impacted by foreign sell-offs over the last 19 sessions, as investors shift their funds to China in response to Beijing’s stimulus initiatives and relatively lower valuations.’
Vinod Nair, Head of Research at Geojit Financial Services, noted that the domestic market experienced a steady decline due to ongoing selling by foreign institutional investors (FIIs). All sectors were affected, with small and midcap stocks bearing the brunt of the impact, except for fast-moving consumer goods (FMCG). Nevertheless, domestic institutional investors (DIIs) have been actively purchasing shares, which helped absorb the selling pressure and reduced the downturn. As a result of this continuous selling trend, the domestic market is anticipated to enter oversold conditions.
