Indian equity markets witnessed sustained selling pressure, closing lower for the fifth consecutive trading session on Friday, January 9. Investor sentiment remained fragile, weighed down by escalating geopolitical tensions and persistent uncertainties in global trade, which cast a shadow over the trading week.
Key Indices and Weekly Performance
The session began on a weak note, with the sell-off intensifying as the day progressed. The Nifty 50 index dropped 193 points, or 0.75%, to settle at 25,683. The S&P BSE Sensex followed suit, ending the day at 83,574, marking a decline of 0.72% from its previous close.
For the entire week, the damage was more pronounced. The Nifty registered a weekly fall of 2.45%, its most significant single-week drop in over three months. Similarly, the Sensex declined by 2.55% over the five days, recording its largest weekly fall since the middle of September.
Broad Market and Sectoral Carnage
The weakness was not confined to the frontline indices. Broader markets faced even sharper declines. The Nifty Midcap 100 index cracked by 0.8%, while the Nifty Smallcap 100 index plunged a steeper 2%.
On the sectoral front, the sell-off was widespread. Barring the Nifty Oil & Gas and Nifty IT indices, all other major sectoral gauges ended deep in negative territory. Nifty Realty was the worst performer, tumbling 2.16%. It was closely followed by Nifty Chemicals and Nifty Consumer Durables, each falling 1.5%. Other indices like Nifty FMCG, Nifty Auto, and Nifty Pharma tanked 1.13%, 1.10%, and 0.86%, respectively.
Stocks That Faced Maximum Selling Pressure
Among individual stocks in the Nifty 500 universe, Elecon Engineering emerged as the top loser. Its shares crashed 16.2% to ₹422 apiece as investors reacted negatively to the company's December quarter earnings.
Indian Energy Exchange was another major decliner, falling 8% to ₹138.2. This drop came after reports that the Electricity Appellate Tribunal (APTEL) scheduled January 19 as the next hearing date for the critical market coupling case.
Manappuram Finance also came under heavy selling pressure, dropping 7.5% to ₹286.35. The decline followed news that the Reserve Bank of India had raised objections to the company's proposed deal with Bain Capital.
The sell-off in Force Motors accelerated, with the stock falling another 7% to ₹18,700. This extended its losing streak to five straight days, resulting in a cumulative decline of 11.82% over the period.
Transformers & Rectifiers, after showing some recovery momentum in the first half, could not sustain the gains. The stock eventually fell another 6.6% to ₹272 per share. Other notable losers in the Nifty 500 included Tejas Networks, Ather Energy, Siemens Energy India, Godrej Properties, and Reliance Infrastructure, all closing with losses of up to 5%. Data indicated that nearly 75 stocks ended the day with losses exceeding 3%.
Bright Spots in a Bleak Market
Despite the overwhelming negative sentiment, a handful of stocks managed to buck the downward trend. National Aluminium Company (NALCO) topped the gainers list on the Nifty 500, closing 4.6% higher at ₹348 per share.
Hindustan Zinc rebounded from a two-day rout, with its stock recovering 3% to ₹608. Other notable performers that ended in the green included Leela Palaces & Hotels, Oil India, Coforge, Krishna Institute of Medical Sciences, Ashok Leyland, Coromandel International, Petronet LNG, CCL Products India, Asian Paints, and Ipca Laboratories. These stocks posted gains ranging between 1.5% and 2.7%.
The persistent decline over the week highlights the cautious stance of investors, who are keenly watching global developments and domestic corporate results for future direction.
