The Nifty ended down 25.85 points, or 0.2%, at 15,782.15. The Sensex ended down 136.69 points, or 0.3%, at 52,793.62. Both indices had gained as much as 1.7% earlier in the day. Nifty Midcap 100 and Smallcap 100 indices ended 1% higher.
Analysts said the reversal of gains was partly triggered by SBI’s earnings, which missed estimated.
shares fell nearly 4% to end as the biggest laggard on the Sensex. , , and ‘s shares ended 2-3% lower.
“Market sentiment is bearish led by immense selling pressure from foreign investors. Unless selling pressure from foreign investors comes down and they don’t turn neutral or buyers, the market will continue to be weak,” said Abhilash Pagaria, head of alternative and quantitative research, Securities.
Foreign investors sold shares worth ₹3,780 crore on Friday while domestic institutional investors bought shares worth ₹3,169.62 crore. In May so far, foreigners have net sold to the tune of close to ₹32,000 crore. The net outflow has been ₹1,63,150 crore since January.
“Nifty could fall to 15,450 as the heavyweight banking sector looks weak. Sbi results saw good loan growth and asset quality but it was a miss on NII. The overall setup suggests it’s a sell on rise market with stop loss places at 16,350,” said Pagaria.
Analysts have been predicting a rebound on the grounds that the market was oversold after the recent sell-off. The Nifty is down nearly 13% from the 2022 high of 18,114.65 hit on April 8. With the index managing to close above 15,800 on Thursday, traders had covered some of their bearish bets, helping the index cross 16,000 in early trades.
“The trend remains negative in the near term and closes above 16,400 will only resume the uptrend,” said Kunal Shah – senior technical & derivatives analyst at
. “The downside support is placed at 15,600-15,500 levels and if fails to sustain above this, it will witness further correction.”