Stock markets end five-day winning streak as Sensex drops more than 600 points

Market benchmarks Sensex and Nifty took a hit on Friday after a five-day winning streak, as investors pulled back from banking, financial, and consumer durable stocks amidst mixed global market trends. The BSE Sensex plummeted by 609.28 points or 0.82% to close at 73,730.16, with factors like rising global crude prices, a weakening rupee, and continuous foreign fund outflows adding to the negative sentiment.

The NSE Nifty also saw a decline of 150.40 points or 0.67% to settle at 22,419.95. Bajaj Finance was a major drag on the Sensex, dropping nearly 8% following disappointing March quarter earnings. Other laggards included IndusInd Bank, Nestle, Kotak Mahindra Bank, and Mahindra & Mahindra.

On the flip side, Tech Mahindra surged over 7% after announcing an ambitious three-year growth plan, boosting investor confidence. Wipro, ITC, UltraTech Cement, Titan, and Axis Bank were among the gainers for the day.

Analysts noted that the correction was expected after the recent rally and attributed the fall to global factors, including a weaker Japanese Yen and discouraging US economic data. In Asian markets, Seoul, Tokyo, Shanghai, and Hong Kong closed in positive territory, while European markets were trading higher. Wall Street, however, ended lower on Thursday.

With Brent crude climbing to USD 89.29 a barrel and the rupee weakening against the US dollar, investors are closely monitoring these external factors. Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,823.33 crore on Thursday, further impacting the market sentiment. The BSE benchmark had gained 486.50 points on Thursday, while the NSE Nifty had advanced by 167.95 points.