Market slips after 2 day gains, Sensex falls 329 pts, Nifty below 23,100

The Indian stock market indices reversed early gains to close lower on Friday, with the Sensex plunging over 300 points and the Nifty settling under 23,100, as concerns over an earnings slowdown overshadowed optimism about easing crude oil prices and lower U.S. interest rates. At close, the Sensex was down 329.92 or 0.43 percent at 76,190.46 and the Nifty was down 113.15 points or 0.49 percent at 23,092.20.
Hindustan Unilever (HUL), with a price increase of 2 percent was the top gainer on the Nifty, while Dr Reddy's Labs was the biggest loser, with a price decline of 5.04 percent, according to information. The Nifty FMCG sector emerged as the best performer, closing at 56069.3 with a positive change of 0.52 percent. In contrast, the Nifty Pharma sector was the worst performer, closing at 21,872.40 with a negative change of 2.11 percent.
On the sectoral front, while IT and FMCG indices managed to stay in the green, the broader market faced significant pressure. The Nifty Smallcap 100 fell by 2.5 percent during the session, while the Nifty Midcap 100 declined up to 1.5 percent, erasing a substantial portion of the gains recorded in the previous sessions.
Market observers pointed to heightened volatility and concerns over quarterly earnings and sustained FII selling as key drivers of the sell-off in broader indices.
Rupee Close:
On 24 Jan'25,the Indian rupee appreciated 22 paise to close at 86.22  against the U.S. dollar on Friday,as a decline in the U.S. dollar index supported investor sentiments.Forex traders reportedly stated weak crude oil prices also supported the local unit, while sustained foreign fund outflows weighed on the local unit. Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee’s trajectory.
Trading Guide:
Vinod Nair, Head of Research, Geojit Financial Services reportedly quoted as saying,the market is haywire, with sentiment so weak that even results in-line with expectations are triggering selloffs. While the broader market is under pressure, positively, large-cap stocks are showing some resilience. From the taper-tantrum to geopolitical risks, the Indian market has borne numerous challenges in its history. Similarly, the ongoing appreciation of the USD could reverse once market yields flatten out, as the Trump administration is to sustain is slowing. This negative market bias is not expected to persist for long. For long-term investors, this is not the time to sell but rather be patient and adopt an accumulation strategy.
Market experts have recommended five shares to buy-Sun Pharmaceutical Industries Ltd, Birlasoft Ltd, Aditya Birla Capital Ltd, Mahanagar Gas Ltd and Supreme Industries Ltd.

(Business Correspondent)