Holi week leaves investors poorer by Rs 18.8 lakh crore amid Middle East crisis

Domestic equity benchmarks plunged on Friday, falling more than 1.0 per cent each for a third time this week, as investors weighed the severity of the raging crisis in the Middle East. A sell-off across sectors -- led by financial and auto shares -- weighed on the headline gauges, while gains in select IT counters prevented deeper losses. Caution returned to the markets amid the escalating conflict between the US and Israel against Iran that began with the killing of iran's Supreme Leader last week followed by Iran's attacks on several countries in the region. Rising benchmark oil rates put pressure on the markets, say analysts.

The Sensex ended 1,097 points, or 1.4 per cent, lower at 78,918.9 while the Nifty50 settled at 24,450.5, down 315.5 points, or 1.3 per cent, from its previous close. The Nifty Bank tumbled 1,272.6 points, or 2.2 per cent, to close at 57,783.3, with all its 14 constituents suffering losses of around 1-3 per cent each.

Analysts say the markets are beginning to price in a broader energy supply shock that could send crude oil rates rising much higher, stoking ​inflation pressures and hindering global growth.

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Crude oil benchamarks were on track for their biggest ​weekly gain since the depths of the pandemic, last seen trading at $88-89 per barrel levels.

Top Nifty50 gainers and losers, and market movers

ICICI Bank, Eternal, Shriram Finance, SBI, Axis Bank, UltraTech Cement, HDFC Bank, IndiGo, HDFC Life and Adani Enterprises -- closing between 2.2 per cent and 3.1 per cent lower -- were the worst hit among the 37 losers in the Nifty50 universe.

On the other hand, BEL, ONGC, RIL, NTPC and Hindalco -- rising between 0.6 per cent and 2.5 per cent -- were among the top gainers.

Among index heavyweights, selling pressure in ICICI Bank, HDFC Bank and SBI posed maximum pressure on Sensex, whereas buying interest in RIL and BEL lent some support.

Broader indices took a hit too, with the Nifty Midcap 100 and Nifty Smallcap 100 falling 0.9 per cent and 0.7 per cent, respectively.

Overall market breadth was skewed in favour of the bears, with an advance-decline ratio of 4:5 as 1,896 stocks rose while 2,302 fell on BSE.

It was a four-session trading week owing to the Holi holiday on Tuesday.

Holiday-shortened week leaves investors poorer by Rs 18.81 lakh crore

On Friday alone, investors lost Rs 3,21,785.3 crore in wealth, as BSE-listed companies' market capitalisation (mcap) fell to Rs 449.68 at the end of the day's trade, according to provisional exchange data.

For the week, investor wealth eroded by Rs 18.81 lakh crore, the data shows.

What caused Nifty50 to fall again, after Thursday's breather?

Selling pressure intensified in the final 30-40 minutes of the day, taking the Nifty50 to as low as 24,415.8 -- 438.4 points below its intraday high the previous day when it tested the 24,850 mark on the upside.

Zee Business Managing Editor Anil Singhvi pointed out the following market cues as the Street entered the final 90 minutes of trade:

• There is some weakness in the market, but no need to panic
• Given it is the end-week session, the fall could have been sharper
• Weakness in US markets and strength in crude oil are two major negative factors
• There is also fear of adverse news in the coming weekend
• Thursday’s recovery reduced some of the fear
• Nifty Bank support is missing in intraday trade; its support would have driven a recovery on Friday as well

The market guru pointed out that strong support appears to be placed at 24,300-24,500 and 57,800-58,125 levels in the Nifty50 and Nifty Bank indices, respectively.

He also said that closing levels below 25,475 and 58,750 would signal more weakness, respectively.

In bouts of recovery, one can expect profit-booking in the 24,700-24,850 and 58.750-59,050 ranges, he said.

Global markets

European shares began the day on a muted note. with the pan-regional Stoxx 600 index down 0.1 per cent in early trade. The UK's FTSE was up 0.1 per cent, Germany's DAX was flat and France's CAC was up 0.2 per cent.

Dow futures were down 115.1 points, or 0.2 per cent, indicating a listless start on Wall Street on Friday.

Other major Asian markets fared relatively better than Dalal Street, with MSCI's broadest index of Asia Pacific shares outside Japan declining 0.2 per cent. Japan's Nikkei 225 rose 0.5 per cent.