Indian benchmark indices witnessed a dramatic sell-off in the final hour of trade on Friday, with the BSE Sensex plunging 1,092.06 points to settle at 74,775.74 and the NSE Nifty dropping 359.40 points to close at 23,547.75.
The benchmarks had traded in positive territory for much of the session, buoyed by easing concerns over tensions in the Middle East and strength in select technology stocks. However, sentiment reversed sharply after 3 pm, triggering a broad-based sell-off that erased earlier gains and dragged both indices to their day’s lows by the closing bell.
Market participants attributed the late slump to a combination of profit-booking, persistent foreign fund outflows, uncertainty surrounding global geopolitical developments and concerns over the impact of below-normal monsoon rainfall on the economy and inflation.
Selling pressure was visible across most sectors, with financial, metal and FMCG stocks among the biggest losers. Information technology shares offered some support during the day but were unable to prevent the sharp decline in headline indices.
The steep fall in the final hour also reflected heightened investor caution, with traders reducing risk exposure ahead of key global developments and fresh domestic triggers. Volatility spiked as selling intensified across large-cap counters.
Also read – Why did Sensex, Nifty suddenly crash after 3 pm today: Markets bloodbath explained
The sharp decline marked one of the biggest single-day falls for the benchmarks in recent weeks, underscoring the fragile sentiment prevailing in the market despite positive global cues earlier in the session.
Investors will now closely monitor foreign institutional investor activity, crude oil prices, geopolitical developments and domestic macroeconomic indicators for further direction in the coming sessions.
Rupee bounces back
The rupee appreciated 53 paise to close at 95.05 (provisional) against the US dollar in early trade on Friday, as renewed optimism over the peace deal between the US and Iran boosted market sentiments.
Forex traders said the USD/INR pair appreciated on an overnight decline in crude oil prices and a fall in the US dollar, after the US and Iran reached an understanding to extend the ceasefire for another 60 days.
On Thursday, the US and Iranian negotiators reached a tentative agreement to extend the ceasefire by 60 days and start a new round of talks on Iran’s nuclear programme.
At the interbank foreign exchange market, the rupee opened at 95.77 against the US dollar, then touched an intraday high of 94.97 and a low of 95.78 during the day.
At the end of Friday’s trading session, the rupee was quoted at 95.05 (provisional), up 53 paise from its previous close.
