Market tumbles as earnings concerns overshadow global optimism 

The markets experienced a significant downturn on Friday, with benchmark indices losing ground amid persistent concerns over corporate earnings and market sentiment. The Sensex shed 329.92 points, closing at 76,190.46, while the Nifty 50 depreciated 113.15 points to settle at 23,092.20.

The day’s trading session began with initial optimism, but quickly turned volatile. Devarsh Vakil from HDFC Securities explained, “Markets rose at the open on the back of positive global cues. Asian equities rose today, following a rebound in technology stocks that pushed Wall Street to a record high.”

Ajit Mishra from Religare Broking provided additional context, noting, “Markets slipped nearly half a per cent, extending the ongoing consolidation phase after a two-day rebound. The Nifty index witnessed volatile swings following a flat opening and eventually closed near the day’s low.”

The sectoral performance remained challenging, with 11 out of 13 major sectors ending in the red. The IT and FMCG sectors emerged as the lone bright spots. Ameya Ranadive, a Senior Technical Analyst, observed, “The downturn was primarily driven by concerns over moderating corporate earnings, which largely offset the positive impact of lower oil prices and anticipated US rate cuts.”

Individual stock performance reflected the broader market sentiment. Dr. Reddy’s Laboratories was the top loser, plummeting 4.90 per cent, while Hindustan Unilever was the stand-out performer, gaining 2.52 per cent. Other notable gainers included Britannia (+1.74 per cent) and Eicher Motors (+1.45 per cent).

Manish Bhandari from Vallum Capital Advisors offered a broader perspective: “With a change in the market cycle after 3 years, we are now bracing for potentially a flat return in CY25. We expect the worst is over for the rupee as it depreciated due to the huge appreciation of the DXY.”

The market’s technical outlook remains cautious. Amol Athawale from Kotak Securities noted, “Technically, the market is facing selling pressure at higher levels and holds a lower top formation on daily charts, which is largely negative.”

Rajesh Bhosale from Angel One provided a nuanced view of the current market situation: “Throughout the week, bulls made several attempts to bounce back, but the overall sentiment remained weak as Nifty slipped for the third consecutive week.”

Shrikant Chouhan from Kotak Securities highlighted additional challenges: “FIIs continue to remain net sellers of Indian equity, adding pressure on the market performance. The Q3FY25 earnings season has largely been in line with our subdued expectations.”

The broader market indices suffered significantly, with the Nifty Midcap 100 falling 1.55 per cent and the Nifty Smallcap 100 plummeting 2.35 per cent. Vinod Nair from Geojit Financial Services offered a measured outlook: “We believe the market is now in the final phase of consolidation. With the broad market having corrected by 14 per cent, the downside appears limited, supported by strong long-term economic fundamentals.”

Despite the current challenges, some analysts remain optimistic about long-term prospects. “For long-term investors, this is not the time to sell, but rather be patient and adopt an accumulation strategy,” Nair added.

As the market approaches the Union Budget, investors are advised to remain cautious and watch for potential policy announcements that could provide direction to the ongoing market correction.

The extensive quotes from market experts provide a comprehensive view of the day’s market dynamics, offering readers insights into the complex factors driving the current market sentiment.