After a five-day surge, the Sensex drops 609 points

In the midst of conflicting trends in global markets, investors reduced their exposure to banking, financial, and consumer durable sectors, causing market benchmarks Sensex and Nifty to wilt under selling pressure on Friday after a five-day surge.

According to dealers, the rupee’s decline, rising global oil prices, and ongoing outflows of foreign funds all contributed to the negative atmosphere. The 30-share BSE Sensex fell 609.28 points, or 0.82 percent, to close at 73,730.16, suggesting that profit-taking was also in effect. It dropped to 73,616.65 throughout the day by 722.79 points, or 0.97 percent.

The NSE Nifty dropped to 22,419.95, a loss of 150.40 points, or 0.67 percent. The BSE benchmark increased by 641.83 points, or 0.87, while the NSE Nifty increased by 272.95 points, or 1.23 percent, on a weekly basis.

The decline was anticipated since profit-taking had been overdue for some time and the benchmark indexes had both increased for five consecutive sessions.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. stated, “Correction is also attributed to global factors after the Japanese Yen fell to a new 34-year low and disappointing US data pushed its benchmark yields to over 4.7 per cent, thus worsening hopes of an interest rate cut in the medium term.”