Stock market plunges: Sensex-Nifty decline in Friday's market turmoil

New Delhi [India], April 12 : The Indian stock market plunged into negative territory on Friday, with both the benchmark indices, Sensex and Nifty, witnessing significant declines.
The Sensex nosedived by 793.25 points, concluding the session at 74,244.90, while the Nifty fell by 234.40 points to settle at 22,519.40.
Among the Nifty companies, the market sentiment was overwhelmingly bearish, with only five advances against 45 declines.
Notable gainers included Divi's Lab, Bajaj Auto, Tata Motors, TCS, and Nestle India, while Sun Pharma, Maruti, Power Grid, Titan, and ONGC found themselves among the top losers at the close of Friday's trading session.
The NSE Nifty 50 mirrored the downward trend, finishing the day with a decline of 1.05 per cent at 22,515.70, while the BSE Sensex dropped by 1.08 per cent to settle at 74,224.09.
Highlighting the performance of individual stocks, Divi's Lab, Bajaj Auto, Tata Consumer Products, Tata Motors, and TCS emerged as the top performers, while Sun Pharma, Maruti Suzuki, Power Grid, Titan, and ONGC faced significant setbacks on April 12.
The negative sentiment permeated across various sectors, with the Pharma, Healthcare, and Oil and Gas sectors bearing the brunt of the losses, recording declines of 1.81 per cent, 1.52 per cent, and 1.24 per cent, respectively.
Other sectors such as FMCG, Bank, Financial Services, IT, Auto, Consumer Durables, Metal, and Realty also witnessed downturns, highlighting the widespread nature of the market downturn.
Meanwhile, in European markets, the Stoxx 600 index experienced a notable surge of 1.1 per cent, buoyed by gains in mining, energy, and technology stocks. The spike in Brent crude oil prices, surpassing USD 90 a barrel, was attributed to escalating tensions in the Middle East following an attack on Iran's diplomatic compound in Syria.
Similarly, gold prices reached a record high nearing USD 2,400 an ounce, while base metals continued their rally amidst increased supply risks and positive demand outlook.
Commenting on the global market dynamics, Varun Aggarwal, founder and managing director of Profit Idea, highlighted the steady performance of US equity futures, driven by relief over producer-price figures not indicating significant inflationary pressures.
Aggarwal also pointed out the euro's depreciation against the dollar, fueled by expectations of euro-area interest-rate cuts in contrast to anticipated rate hikes by the Federal Reserve due to persistent US inflation.
He said, "US equity futures remained steady following substantial gains on Wall Street, fueled by relief over producer-price figures not showing significant inflationary pressures. The euro depreciated to its lowest level against the dollar in five months amidst expectations of euro-area interest-rate cuts, contrasting with anticipated rate hikes by the Federal Reserve due to persistent US inflation."
He added, "Focus shifted to corporate earnings as major US banks initiated the first-quarter reporting season, with expectations of 3.8 per cent annual growth in S&P 500 earnings per share and a 38 per cent rise for key tech companies including Apple, Microsoft, and Amazon."
While, in commodities, oil prices rebounded amid geopolitical tensions in the Middle East, while industrial metals rallied on improved demand prospects, particularly for copper and aluminum, he added.
The negative sentiment in the Indian stock market reflects the prevailing uncertainty and volatility, underscoring the importance of cautious investment strategies in navigating the current economic landscape.