Bears Back in Action: Sensex Tumbles 720 Points, Nifty Down 200 Points

Mumbai: The Indian stock market experienced a downturn on Friday, marking the third trading day of 2025. After a brief period of recovery, the benchmark BSE Sensex fell by 720.60 points, equivalent to a 0.90 percent drop, closing at 79,223.11. Similarly, the broader Nifty 50 index also faced losses, down by 183.90 points or 0.76 percent, finishing the day at 24,004.75. This decline comes as investors moved to sell off shares in banking and information technology sectors, especially as the earnings season is set to begin next week. Consequently, the market capitalization of all listed companies on the BSE decreased dramatically by Rs 2.28 lakh crore, leading to a total of Rs 449.72 lakh crore.

Out of the 50 stocks on the Nifty index, 32 declined while only 18 managed to end in the positive. The trend was similarly reflected in the Sensex, where only 13 out of its 30 stocks recorded gains.

Despite this setback, the BSE benchmark showed a weekly gain of 524.04 points or 0.66 percent, while the Nifty index saw an increase of 191.35 points or 0.80 percent over the same period.

According to Prashanth Tapse, Senior Vice-President of Research at Mehta Equities, the market's loss of momentum can be attributed to ongoing pessimism surrounding slowing growth rates, inflated domestic valuations, foreign fund exits, and the uncertain trade policies expected following Donald Trump's return as U.S. president. As a result, it is likely that the markets will continue to experience corrections, leading investors to adopt a cautious stance as they monitor global developments.

Among the stocks listed on the Sensex, Zomato Ltd witnessed the largest decline, falling 4.27 percent to Rs 273.40. HDFC Bank followed, dropping 2.46 percent to close at Rs 1,749.30. Other notable losers included Tech Mahindra Ltd, down 2.23 percent to Rs 1,689, and Adani Ports, which fell by 2.15 percent to Rs 1,199.25.

In contrast, Tata Motors emerged as a top gainer, up 3.33 percent, trading at Rs 790.40. Other gainers included Titan and Hindustan Unilever.

On a broader scale, the BSE midcap gauge declined by 0.33 percent, while the smallcap index saw a minimal drop of 0.02 percent. Sector-wise, several indices fell, including BSE Focused IT, which dropped 1.42 percent, and the banks sector, which fell 1.07 percent. However, the energy, telecommunication, consumer durables, utilities, metals, and oil and gas sectors saw gains.

Previously, the BSE benchmark had risen sharply, recording its most significant single-day gain in over a month with an increase of 1,436.30 points or 1.83 percent to close at 79,943.71. The Nifty had surged 445.75 points or 1.88 percent to reach 24,188.65.

Sameet Chavan, Head Research for Technical and Derivative at Angel One, cautioned traders against getting swept up by temporary uptrends and recommended avoiding high-leverage positions. He mentioned that if the Nifty index surpasses the key resistance levels of 24,500 to 24,800, it might trigger a pre-budget rally. Until then, immediate resistance levels are observed between 24,200 to 24,300.

Bears, Market, Sensex