NEW DELHI: Weak global cues, lacklustre Q1FY25 corporate earnings and rising tensions in West Asia weighed down heavily on stock markets worldwide, including India, as benchmark indices - the BSE Sensex and the NSE Nifty50 - plunged over 1 per cent each on Friday.
The 30-share index Sensex finally closed 886 points or 1.08 per cent lower at 80,981.95 while the Nifty 50 settled 293 points or 1.17 per cent lower at 24,717.70. In the broader market, the mid and smallcap indices on the BSE fell 1.19 per cent and 0.58 per cent, respectively.
Investors lost as much as Rs 5 lakh crore during the session as the market capitalisation of all firms listed on the BSE came down to Rs 457 lakh crore from 462 lakh crore in the previous session.
Vinod Nair, head of research, Geojit Financial Services, said the Indian market is showing signs of fatigue at higher levels, as most positive factors have already been priced in. Subdued Q1FY25 earnings and stretched valuations are not reassuring investors.
“Globally, economic growth is showing signs of weakness, compounded by escalating trade tensions, conflicts in the Middle East, and persistently high inflation…Going forward, the chances of further consolidation seem elevated due to premium valuations, weak Q1 results, and ongoing global market consolidation,” added Nair.
Escalating tension in the Middle East dampened the market sentiment after Israel’s claim that Mohammed Deif, the head of Hamas’ military wing, was killed in an airstrike in Gaza last month.