Stock Market Weekly Wrap: Nifty Ends Below 23,550 Pts, Sensex Tanks 1,000 Pts, Midcaps Steal The Show

Sharp sell-off dragged Nifty and Sensex on Friday, as the geopolitical tensions, Rupee trajectory and other factors kept the investors on edge. However, the MSCI Global Standard Index readjustment today emerged as the key trigger that dragged the Indian stock market.

Nifty 50 ended the session 359 points lower, below 23,550, whereas BSE Sensex ended the session 1000 points lower.

Stock Market Closing Today

BSE Sensex closed 1.39% lower below 74,850 mark, whereas Nifty 50 closed 1.5% lower close to 23,450 points. The sharp decline in the stock market today came as MSCI rebalancing took place during the session.

Nifty Bank was down close to 0.9% with IndusInd Bank, Canara Bank, AU Bank, HDFC Bank, Axis Bank, ICICI Bank, Kotak Mahindra Bank, etc, falling more than 1% on Friday. Nifty Financial closed around 1.55% lower, whereas, Nifty Midcap Select was down around 1.57%.

Why Stock Market Is Falling Today?

The recent decline in Nifty and Sensex came in the last thirty minutes before the stock market closing. Sensex fell nearly 800 points after 3 pm on Friday. The global index provicer MSCI added four Indian stocks and eliminated four from its widely tracked Global Standard Index in latest periodic review.

AS per the recent MSCI rebalancing, Hyundai Motor India, Jubilant Foodworks, Kalyan Jewellers, and Rail Vikas Nigam Limited will be excluded from MSCI index. Federal Bank, Multi Commodity Exchange of India, National Aluminium and Indian Bank are the new entrants to MSCI Index.

With this recent rejig, India's weight on the MSCI Global Standard Index will also remain broadly steady at 12.3% against 12.4% post the February review.

Broad Market Ends in Red, India Vix Up 9%

Broadmarket indices saw a sharp sell-off during Friday's trading session; however, small-cap stocks held ground, although they suffered marginal losses during the day. Nifty 100, 200 and 500 were down close to 1.45%, 1.43%, and 1.35%.

Whereas, Nifty Midcap 50 and Nifty Midcap 100 ended the session 1.49% and 1.33% lower. Nifty SmallCap 100 and Nifty SmallCap 50 ended the session 0.87% and 0.95% loss.

"On Friday, Indian markets witnessed a sharp decline, with the Nifty slipping 1.5% to close at 23,547 amid broad-based profit booking, a sharp rise in the India VIX (+9.4%), and weakness across Metal and Oil & Gas stocks. The pressure intensified during the final hours of trade after the MSCI Global Standard Index rebalancing came into effect, triggering heightened volatility in select stocks amid expected passive fund flow adjustments and portfolio rebalancing activity. Adding to the pressure, lingering uncertainty surrounding the ongoing US-Iran negotiations and continued concerns over geopolitical stability in the West Asia kept overall risk appetite subdued across both global and domestic markets," explained Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd.

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