Market Closing: Sensex Ends 365 pts Lower, Nifty Near 19,400; IOB Surges 14%

The key benchmark indices extended losses on Friday as investors preferred to stay on the sidelines ahead of the key inflation data Monday.

The RBI, while holding rates steady for on Thursday, had revised its inflation forecast upward for FY24 to 5.4 per cent, and said it expects a ‘substantial increase’ in headline inflation in the near term due to the recent spike in vegetable prices.

The S&P BSE Sensex ended near the lows of the day, down 365.53 points at 65,322.65 dragged by private banking, pharma and metal shares. In the process, the BSE benchmark ended the week with a loss of 398 points.

Meanwhile, the NSE Nifty 50 shed 115 points to settle at 19,428 on Friday.

Among the Sensex 30 shares, IndusInd Bank and NTPC slipped over 2 per cent each. Tech Mahindra, Bajaj Finance, Sun Pharma, Hindustan Unilever, Asian Paints, JSW Steel, Infosys, Wipro, Bajaj Finserv, HDFC Bank, Nestle and ICICI Bank were the other p prominent losers, down 1 – 2 per cent each. On the other hand, HCL Technologies rallied 3 per cent on inking $2.1 billion deal with Verizon. Power Grid Corporation of India and Titan were the other visible gainers.

The broader indices also turned negative towards the end of the day. The Nifty MidCap index slipped 0.5 per cent, while the SmallCap was down 0.2 per cent.

Among sectors, the Nifty IT index advanced 0.7 per cent, while the Nifty Metal, Bank, Pharma, and Financial Services indices dropped 0.4 per cent each.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “Inflation data from the US indicate that the soft landing narrative is in tact. The Fed is likely to pause in September. This will support global equity markets. The only negative from the RBI’s message yesterday is the hike in CRR to neutralise the excess liquidity created by the withdrawal of the Rs 2000 notes. The sentimental impact of this decision is unlikely to last long since it will not impact the banking sector’s bottom line much since the NPAs of banks are coming down and the credit growth in the economy is good. The indication from the RBI is that a rate cut can be expected only in Q1 of FY 25. This will be a headwind for the market. But the market is likely to remain strong. Banks, capital goods and autos are likely to do well, going forward.”