Indian stocks fall sharply weighed by bank indices; Sensex down 874 points

New Delhi [India], January 27 (ANI): Indian stock indices plummeted sharply during Friday's trade weighed largely due to a significant decline in banking, financial, metal, and oil and gas indices.
On Thursday, Indian stock markets were shut on the occasion of the 74th Republic Day.
Sensex closed the week's last session at 59,330.90 points, down 874.16 points or 1.45 per cent, whereas Nifty closed at 17,604.35 points, down 287.60 points or 1.61 per cent.
Banking, financial, metal, and oil and gas Nifty sectoral indices declined in the range of 2.5-5.6 per cent on the day's close, National Stock Exchange data showed.
Coming to specific stocks, Adani Enterprises, Adani Ports, SBI, ICICI Bank, and IndusInd Bank were the top five losers, declining 18.3 per cent, 15.2 per cent, 4.7 per cent, 4.3 per cent, and 3.9 per cent, respectively, NSE data showed.
The Indian benchmark equity indices -- Sensex and Nifty -- hit their over-three-month lows during Friday's session.
"The sharp slump in the Indian market was triggered by an unfavourable research report on Asia's richest promoter group companies. This is also affecting the banking stocks even though the results of the sector are optimistic due to high group lending, (also) indicating potential risk. PSU banks are the most impacted compared to private banks owing to high exposure," said Vinod Nair, Head of Research at Geojit Financial Services, in a note.
In addition, the subdued market sentiment may be due to the latest pulling out of funds by foreign portfolio investors (FPIs) from Indian stocks.
Foreign portfolio investors (FPIs) have sold assets worth about Rs 17,023 crore in Indian stock markets in 2023 (till January 25), the latest data from National Securities Depository showed.
Going ahead, for fresh cues, investors would keep an eye on the upcoming Union Budget for 2023-24, slated to be presented on February 1. (ANI)