Indian Stock Market Weekly Wrap: Indian stock market indexes ended the volatile session with modest losses on Friday. Continuous selling pressure from the FIIs and the weakening of the rupee against the US dollar dampened market sentiments in the week’s last trading session. Concerns over subdued economic growth, slower rate cuts in the US, and a slowdown in quarterly earnings further hit the investor sentiment.
Indian markets opened positive on Friday and soon erased all early gains and traded volatile throughout the day and ultimately ended in the negative. The Nifty price index settled below the 23450 mark, after reaching a day high of 23596.60 in the late morning session.
Sensex and Nifty Today
The BSE Sensex was down by 241.30 points or 0.31% to 77378.91, while the Nifty 50 index declined 95 points or 0.40% to 23431.50. The broader markets underperformed the benchmarks, as Nifty Midcap declined 2.08% while the Nifty Smallcap index plunged 2.61% at the close.
On the sectoral front, the IT sector ended higher after in-line expectations of TCS Q3 earnings, while all other sectoral indices closed in the red on the NSE. The heavyweight stocks, Adani Enterprise, ICICI Bank, and Reliance Industries fell the most on Friday.
The market breadth was weak. On the NSE 326 share were advanced while 2065 shares declined. The NSE’s volatility index “India VIX” rose by 1.75% to 14.92. The Indian rupee against the US dollar hit a new record low Friday.
Sensex and Nifty Weekly
The domestic equity markets snapped a two-week rising streak and ended in the red. The Sensex and Nifty ended in the red during the week due to weak economic data, concerns about weakness in Indian currency, and GDP growth projections that point to a four-year low. The weak global cues and geopolitical tension also hit the market sentiments during the week.
During the week ended on Friday, 10 January 2025, the BSE Sensex slipped 1844.20 points or 2.33% and closed at 77378.91. The Nifty weekly declined 573.25 points or 2.39% and settled at 23431.50.
Economic Data Impacted Indian Stock Market This Week
On Monday, the HSBC India Services PMI data rose to 59.3 in December from 58.4 in November, the fastest growth in four months. The Composite Output Index also improved to 59.2, reflecting robust manufacturing and services activity.
The Reserve Bank of India showed that India’s forex reserves dropped by $4.112 billion to $640.279 billion as of December 27.
GDP growth for 2024-25 is projected at 6.4%, a four-year low, due to weak industrial and investment activity, falling short of RBI and government estimates. These figures guide the upcoming Union Budget.
Conclusion
The Indian stock market ended the week on a negative note, impacted by weak economic data, FII selling, and a depreciating Indian rupee against the US dollar. With geopolitical tensions and subdued investor sentiment, markets are likely to remain volatile in the near term.
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