Even though the Indian stock market benchmark Sensex fell by almost 700 points, or over 1%, nearly 200 equities reached new one-year highs in intraday trading on the BSE on Friday, January 3.
On Friday, the BSE saw 52-week highs for HCL Tech, Mahindra and Mahindra (M&M), Eicher Motors, Info Edge (Naukri), PB Fintech (PolicyBazaar), and United Spirits.
Coromandel International, Ipca Laboratories, Muthoot Finance, Krishna Institute of Medical Sciences (KIMS), Radico Khaitan, and Welspun Corp were among the stocks that hit one-year highs on the BSE.
Indian stock market today
The Sensex closed 721 points, or 0.90 per cent, lower at 79,223.11. The Nifty 50 fell 184 points, or 0.76 per cent, to settle at 24,004.75.
Mid- and small-cap indices surpassed their benchmarks. The BSE Midcap index was down 0.33 per cent, while the BSE Smallcap index (down 0.02%) finished nearly flat.
Domestic market benchmarks fell on profit booking in select heavyweights, as underlying sentiment remained cautious due to signs of slowing economic growth, expectations of weak earnings, stretched valuations, foreign capital outflows, and uncertainty about US trade policies after Donald Trump took office on January 20.
According to Ajit Mishra, SVP- Research at Religare Broking, Friday’s drop appears to be a normal pause following the recent recovery and may continue till the Nifty decisively exceeds the next resistance level at 24,250.
“We continue to recommend focusing on stock-specific opportunities in line with sectoral trends. In the near term, sectors like FMCG, auto, and energy are expected to outperform, so positions should be aligned accordingly,” said Mishra.
