New Delhi, 23 October (H.S.): The Indian stock market came under severe pressure on Friday as a strengthening US dollar and international crude oil prices climbing to USD 115 per barrel heightened concerns over the economic outlook. Sustained selling dominated trading for much of the session, although selective buying in the second half helped benchmark indices recover substantially from their intraday lows. However, the rebound proved insufficient to push either the Sensex or the Nifty into positive territory. After a volatile session, both indices closed sharply lower for the fourth consecutive trading day, while investors’ wealth declined by approximately Rs 7.42 lakh crore.

The market opened in positive territory, with both benchmark indices extending their initial gains amid early buying. The optimism, however, proved short-lived, as selling emerged soon after the opening bell. Within the first half-hour of trading, sellers had gained the upper hand. Profit-booking at higher levels, combined with mounting global concerns, triggered a broad-based sell-off that dragged both indices steadily lower.

Under sustained selling pressure, the Sensex plunged more than 1,314 points from its intraday high, while the Nifty shed over 415 points from its peak. Buying in select stocks resumed after around 1.30 pm, enabling the market to recover a significant portion of its losses. Nevertheless, the benchmarks remained in negative territory at the close. The Sensex ended the session down 0.17 per cent, while the Nifty registered a decline of 0.39 per cent. The broad-based sell-off eroded approximately Rs 7.42 lakh crore from investors’ wealth.

The BSE Sensex opened at 73,665.64, gaining 416.25 points, or 0.57 per cent, against its previous close of 73,249.39. Supported by initial buying, the index soon advanced to an intraday high of 73,766.51, up 517.12 points, or 0.71 per cent. The gains, however, failed to hold as widespread profit-booking set in during the early trading hours.

As selling intensified, the Sensex surrendered its gains and fell 1,314.14 points from its intraday peak. It subsequently dropped 797.02 points, or 1.09 per cent, from the previous close to touch a low of 72,452.37. Selective buying after 1.30 pm provided some support, helping the index recover 671.46 points from its intraday low. The Sensex eventually closed at 73,123.83, down 125.56 points, or 0.17 per cent.

The NSE Nifty followed a similar trajectory. It began the session at 22,742.20, up 54.55 points, or 0.24 per cent, from its previous close of 22,687.65. Early buying lifted the index to an intraday high of 22,787.25, marking a gain of 99.60 points, or 0.44 per cent. The momentum soon reversed as selling pressure mounted across the market.

Despite intermittent attempts by buyers to support prices, persistent selling drove the Nifty down 415.25 points from its intraday high. The index touched a low of 22,372, representing a decline of 315.65 points, or 1.39 per cent, from the previous close. Buying activity picked up shortly before 2 pm, allowing the Nifty to recover 228 points from its low. It ultimately settled at 22,600, down 87.65 points, or 0.39 per cent.

Sectoral indices broadly ended in the red, with metal stocks witnessing the steepest pressure. The Nifty PSU Bank index fell 2.26 per cent, followed by the Nifty Bank index, which declined 1.16 per cent. The Nifty Pharma and Nifty Financial Services indices dropped 1.04 per cent and 1.03 per cent, respectively.

Other major sectoral indices also closed lower. The Nifty FMCG index slipped 0.99 per cent, the Nifty Auto index declined 0.60 per cent, and the Nifty IT index lost 0.27 per cent. The broader market came under even greater pressure, with the Nifty Midcap 100 index plunging 2.21 per cent and the small-cap index falling 2.94 per cent.

The sharp decline in equities significantly reduced the market value of listed companies. The combined market capitalisation of companies listed on the BSE fell to a provisional Rs 451.83 lakh crore at the end of Friday’s session, compared with more than Rs 459.25 lakh crore at the close of the previous trading session on Thursday. The resulting decline of approximately Rs 7.42 lakh crore reflected the substantial erosion in investors’ aggregate wealth during the day.

Trading remained active across the NSE, where 3,297 stocks recorded transactions. Of these, 434 advanced and closed in positive territory, while 2,863 ended lower. Among the 30 Sensex constituents, 10 stocks gained and 20 declined. On the Nifty, 13 stocks closed higher, 36 finished lower and one remained unchanged.

Among the market’s prominent gainers, Eternal rose 4.25 per cent, followed by Apollo Hospitals, which advanced 1.65 per cent. ONGC gained 1.11 per cent, Asian Paints climbed 0.97 per cent, and TCS added 0.92 per cent.

On the losing side, Shriram Finance fell 3.98 per cent, while JSW Steel declined 2.83 per cent. Jio Financial Services dropped 2.74 per cent, Tata Steel shed 2.70 per cent, and Nestlé lost 1.25 per cent, placing them among the session’s leading laggards.

The session underscored the vulnerability of domestic equities to external economic pressures, as concerns surrounding the strong US dollar and elevated crude oil prices coincided with widespread selling across sectors and market capitalisation segments.

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Hindusthan Samachar / Jun Sarkar