Stock market indices Sensex and Nifty fell over 1% each on Friday, mirroring weakness in Asian markets following a US stock slide ahead of key nonfarm payroll data. Concerns over high valuations at Dalal Street, after a long winning streak, led to profit-taking. The BSE Sensex dropped nearly 900 points to a low of 81,304.46, later trading down 761.78 points at 81,439.38. The NSE Nifty50 briefly slipped below 24,900, trading at 24,929.80, down 215.30 points.
On the BSE, 1,254 stocks gained while 2,411 declined, and 217 hit their lower circuit limits. The BSE market capitalisation dropped by Rs 3.78 lakh crore to Rs 461.90 lakh crore.
Analysts expect US jobs data to show an increase of 1,60,000 jobs in August, with unemployment dropping to 4.2%. VK Vijayakumar of Geojit Financial Services suggested the Fed may cut rates in September, with the extent depending on the jobs data. A lower-than-expected figure may lead to a 50-basis-point cut, which could concern markets due to growth risks.
In India, State Bank of India (SBI) led the losses, falling 3.41% after Goldman Sachs downgraded it to "sell." Other laggards included Adani Ports, NTPC, ITC, and Reliance Industries. Bajaj Finance gained 1%, with Hindustan Unilever and Asian Paints edging higher. Vikram Kasat of PL Capital advised caution during the "narrative" phase of stock valuations.
Disclaimer:
The information provided is for general informational purposes only and does not constitute financial advice. Always consult with a professional before making investment decisions.
