At the end of the day, the BSE Sensex fell 1546.84 points or 1.88% to close at 80,722.94, whereas the Nifty 50 was down 495.20 points or 1.96% to end at 24,825.45.
Here’s how analysts read the market pulse:
The primary catalyst for the sell-off was the proposed hike in Securities Transaction Tax (STT) on F&O trades, a move aimed at curbing retail speculation that caught the market off-guard, said Nandish Shah, Deputy Vice President at HDFC Securities.
Wipro, Max Healthcare, and TCS stood out as top Nifty gainers, defying the rout, Shah noted, adding that BEL, Hindalco, and ONGC took the heaviest hits as biggest losers.
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U.S. stocks ended Friday in the red as investors weighed President Trump’s nomination of former Federal Reserve governor Kevin Warsh—widely seen as a hawkish pick—to succeed Chair Jerome Powell, alongside a slate of corporate earnings and an uncomfortably firm inflation reading.
The Dow Jones Industrial Average slipped 179.09 points, or 0.36%, to 48,892.47. The S&P 500 fell 29.98 points, or 0.43%, to 6,939.03, while the Nasdaq Composite retreated 223.30 points, or 0.94%, to 23,461.82, dragged lower by losses in heavyweight technology shares.
European Markets
European stocks finished higher Friday, extending a rally that put the region’s benchmark on track for its longest monthly winning streak since 2021, as investors parsed a round of corporate earnings and assessed the market implications of President Trump’s nomination of a former Federal Reserve official to lead the U.S. central bank.
The regional index rose 0.6% to 611 and was poised to close January with a 3% gain, marking a seventh straight month of advances. Bank shares outperformed, climbing 1.7% to lead sector gains. Spain’s Caixabank surged 6.7% after the lender said it expects lending income and profits to grow this year and next.
Tech View
Technically, after a sharp intraday dip in the second half of the day, the market trimmed some losses, said Shrikant Chouhan, Head Equity Research at Kotak Securities, adding that “From the day’s lows, the market bounced back sharply. On daily charts, it has formed a long bearish candle, and it is currently trading below the 200-day SMA (Simple Moving Average), which is largely negative.”
We are of the view that the short-term market texture is volatile, and volatility is likely to continue in the near future, Chouhan said, adding that “Hence, level-based trading would be the ideal strategy for day traders. On the higher side, 25,000/81300 would act as a crucial resistance zone. As long as the market is trading below this level, weak sentiment is likely to prevail.”
“On the downside, the correction wave is likely to continue till 24650-24600/80100-79900. Further down side may also continue which could drag the index till 24500-24300/79600-79000. On the flip side, above 25,000/81300, the market could move up to 25,200/81900 or 200day SMA,” said Chouhan.
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Most active stocks in terms of turnover
Hindustan Copper (Rs 5,239 crore), MCX India (Rs 4,621 crore), BEL (Rs 4,430 crore), BSE (Rs 4,243 crore), Vedanta (Rs 3,066 crore), Hindustan Zinc (Rs 2,603 crore) and Anant Raj (Rs 1,891 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in value terms can help identify the counters with highest trading turnovers in the day.
Most active stocks in volume terms
Vodafone Idea (Traded shares: 72.57 crore), IFCI (Traded shares: 10.5 crore), BEL (Traded shares: 10.15 crore), Hindustan Copper (Traded shares: 8.8 crore), IRFC (Traded shares: 6.95 crore), Suzlon Energy (Traded shares: 6.78 crore) and YES Bank (Traded shares: 5.72 crore) were among the most actively traded stocks in volume terms on NSE.
Stocks showing buying interest
Shares of Global Health, Anant Raj, Netweb Technologies, Amber Enterprises, Vardhman Textiles, Action Construction Equipment and IFCI were among the stocks that witnessed strong buying interest from market participants.
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52 Week high
Over 68 stocks hit their 52-week highs today while 253 stocks slipped to their 52-week lows. Among the ones which hit their 52 week highs included Oil India, Axis Bank and SBI.
Stocks seeing selling pressure
Stocks which witnessed significant selling pressure were Hindustan Copper, MCX India, IIFL Finance, Bharat Dynamics, Hindustan Zinc, Angel One and Muthoot Finance.
Sentiment meter bullish
The market sentiments were bullish. Out of the 4,309 stocks that traded on the BSE on Sunday, 2,444 stocks witnessed declines, 1,699 saw advances, while 166 stocks remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)