Indian stock markets closed lower for the third consecutive session on Friday, as concerns over President-elect Donald Trump’s potential policies dampened investor sentiment.
The Sensex closed at 77,378.91 points, down 241.30 points or 0.31 percent, while the Nifty ended at 23,440.00 points, declining by 86.50 points or 0.37 percent. Both indices recorded a weekly decline of 2 percent.
Foreign investor selling and sluggish domestic economic growth added to the downward pressure on markets. Sectoral performance was mostly negative, with Nifty IT being the only sector to post gains, closing 3.44 percent higher. Sectors such as media, PSU banks, and realty were the worst performers.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, remarked that the prevailing uncertainty surrounding potential U.S. policies and continued foreign institutional investor (FII) selling would likely keep the market subdued in the near term. He also noted that the ongoing corporate earnings season would lead to stock-specific movements.
The IT sector, buoyed by the performance of Tata Consultancy Services (TCS), stood out amidst the market downturn. TCS reported a 12 percent year-on-year increase in net profit for the October-December quarter, reaching ₹12,444 crore. Revenue from operations rose to ₹63,973 crore, marking a 5.6 percent growth compared to the same period last year.
TCS shares rose by 5.6 percent, closing at ₹4,265, contributing to the gains in the Nifty IT index. Vijayakumar added that while banking sector results are expected to be strong, FII outflows may dampen the sector’s performance in the market.
According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, Indian markets underperformed compared to most global markets.
Chouhan suggested that upcoming inflation data would be a key macroeconomic indicator to watch. The corporate earnings season, which began with TCS’s results, is expected to provide further cues for market participants in the coming weeks.
