Equity markets faced a slight downturn on Friday, slipping by as much as 0.31% due to unfavorable global signals. However, the week wrapped up positively, showcasing gains of up to 0.72%, marking a consecutive week of growth for investors.

Weekly Market Overview

In March, both the Sensex and Nifty indices celebrated monthly returns of up to 6.30%, representing the most significant increase in nine months, since June 2024. The Nifty index notably ended a five-month losing streak, the longest it has experienced since 1996.

On Friday, the Sensex decreased by 191.51 points, or 0.25%, closing at 77,414.92, while the Nifty dipped 72.60 points, or 0.31%, to finish at 23,519.35.

Investor Sentiment and Market Dynamics

"Investors are on the lookout for new catalysts to drive the market forward. The ongoing uncertainty surrounding tariff negotiations is putting a cap on potential gains," explained Ajit Mishra, SVP of research at Religare Broking.

The final week of the financial year started strongly but ended flat, as investor confidence waned following the announcement of new tariffs on the automobile sector. Vinod Nair, head of research at Geojit Investments, noted that despite significant inflows from institutional investors, the market struggled to maintain its upward trajectory.

• Foreign Portfolio Investors (FPIs) sold shares worth Rs 4,352.82 crore on Friday.
• In contrast, Domestic Institutional Investors (DIIs) made net purchases totaling Rs 7,646.49 crore.
• Over the week, FPIs were net buyers of Rs 18,130 crore, while DIIs contributed with net purchases of Rs 6,797 crore.

Broader Market Trends

The broader market indices saw declines as well, with the BSE Midcap and BSE Smallcap indices falling by 0.68% and 0.35% respectively. For the week, these indices lost 0.72% and 1.39%. However, March was a strong month for these segments, with gains of 7.62% and 8.25%.

Sector Performance

Throughout the week, the banking, financial services, capital goods, FMCG, and industrial sectors emerged as the top gainers, appreciating by up to 2.35%. Conversely, the auto, consumer discretionary, telecom, consumer durables, and healthcare sectors faced challenges, experiencing declines of up to 2.35%.

Notable Stock Movements

Among the Sensex stocks, Bajaj Finserv, UltraTech Cement, Kotak Mahindra Bank, HDFC Bank, and Axis Bank were standout performers, with increases reaching 8.69%. However, Zomato, IndusInd Bank, M&M, Tata Motors, and Titan saw significant losses, with declines up to 11.45%.

In a notable development, Zomato and Jio Financial Services were added to the Nifty index. While Zomato shares decreased by 2.46%, Jio Financial Services saw a modest increase of 0.55%.

Wealth Impact

On Friday alone, investors saw a drop in wealth amounting to Rs 1.84 lakh crore, with a weekly decline totaling Rs 42,978 crore.

As the market continues to navigate these fluctuations, investors remain eager for signals that could indicate a more stable and upward-moving trend in the coming weeks.