Snapping six sessions of gains, stock market chop down in negative territory in closing trade on the shortened week ended Thursday since investors booked profits. Banking stocks and IT stocks fell as they stood to receive lesser money than expected from a govt recap plan. Cautions also overcome ahead of the expiry of F&O contracts. Sensex moved away from record high by closing down 111.20 pts to 36,050.44 and the Nifty slipped 16.35 pts to end at 11,069.65.
On weekly view, key indices posted stellar gains and crossed new landmarks to hit fresh record highs through the week. IMF report showing India is set to recover the title as the world’s fastest growing economy in 2018-19 and bright position for global economy elevated sentiment.
Markets have extended the pre-budget rally. Strong corporate earnings have kept investors’ confidence unharmed and led to further buying which supported up the indices to fresh life time peaks almost every day of the week. Indices gained for 3 out of 4 sessions of the week.
Markets registered the eighth consecutive week of gains. During the period, the Sensex gained a rally of 538.86 points, or 1.51%, while the NSE Nifty scored 174.95 points, or 1.60%. Bank Nifty rallied smartly on Friday with the strength seen in the private banks such as HDFC bank, ICICI Bank and IndusInd Bank. The Public sector banks were in attention as the govt announced a recapitalization package of Rs 88,139cr this fiscal year to PSU banks.
Stock markets closed on Friday, 26 January 2018, for Republic Day.