The NSE Nifty closed at 25,327.05, down 0.4% or 96.55 points, while the BSE Sensex ended 0.5% lower at 82,626.23, a loss of 387.73 points.
“Investors booked profits today after the upmove in the past couple of weeks and the revocation of sanctions relief for India at Iran’s Chabahar port by the US also induced some caution,” said U R Bhat, co-founder & director, Alphaniti.
The tariff negotiations are expected to be finalised by the end of November, which implies that gains cannot be sustained on the news of negotiations alone, he added. HCL Technologies emerged as the top loser on Friday, falling 1.6%. ICICI Bank and Trent declined over 1% each. The Bank Nifty and the Nifty IT index slipped 0.5% each. The Nifty FMCG and Auto indices slid 0.4%, while the Nifty PSU Bank index gained 1.3%.
“As the market has not seen any sharp movements recently, the decline in the market today is anticipated to be a pause in the up move,” said Rajesh Palviya, head of Technical and Derivatives, Axis Securities. “Some profit booking is also likely as Nifty jumped over 3% in September so far and some sector rotation could also be at play.”
The Nifty Midcap 150 rose marginally, while the Smallcap 250 index edged 0.1% higher on Friday. Out of the 4,316 shares traded on the BSE, 2,037 advanced and 2,111 declined. Over the past week, the midcap and smallcap indices gained 1.6% and 2.1% respectively.Palviya noted that the put-call ratio is at comfortable levels below 1 and market breadth has also improved, indicating investor confidence.
Agencies“Nifty is expected to be around 25,750-26,000 levels next month during the peak festive season,” said Palviya. “On the downside, the benchmark is likely to hold above key support levels of 25,200 in case of minor bouts of volatility.”
India’s Volatility Index jumped 3.5% in early trade but cooled off to close 0.8% higher at 9.97 on Friday, indicating low risk perception among traders. The index had hit a record low of 9.89 on Friday. Foreign portfolio investors (FPIs) bought shares worth a net ₹390.7 crore on Friday. Domestic institutional investors also bought shares worth ₹2,105.2 crore.
Bhat said foreign investors are not expected to remain aggressive sellers but could continue their selling spree as tariff-related uncertainty weighs on global sentiment.
“Nifty is likely to oscillate in a tight range of around 1% or thereabouts on either side until a tariff settlement has been reached between India and the US,” said Bhat. “Investors can buy on declines but keep 15-20% in cash as a settlement will be reached and the economy is reasonably buoyant on the domestic front.” Elsewhere in Asia, Taiwan declined 0.7% and Japan fell 0.6%. South Korea and China slid 0.5% and 0.3% respectively, while Indonesia advanced 0.5%. Hong Kong ended flat.
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