Nifty snaps five-day rally driven by weak global cues

The domestic markets snapped their five-day rally on Friday, with the Nifty declining 150.40 points to close at 22,419.95, and the Sensex falling by 609.28 points to end at 73,730.16.

The domestic equity benchmarks halted their five-day winning streak driven by weak global cues, said Hrishikesh Yedve, AVP, Technical and Derivatives Research, Asit C Mehta Investment Intermediates.

The Nifty opened on a positive note on the first day of the May series but could not sustain at higher levels before closing the day on a negative note at 22,420 levels.

The broader market outperformed the benchmarks, with the midcap and smallcap indices registering fresh lifetime highs, he said.

Deepak Jasani, Head of Retail Research, HDFC Securities, said that cash market volumes on the NSE fell to Rs 1.22 lakh crore on Friday. The broad market indices ended in the positive even as the advance-decline ratio remained firm.

Global equities were mostly higher on Friday despite worries about the economic outlook and inflation in the US and the rest of the world. The Bank of Japan kept interest rates around zero on Friday, as expected, while removing a reference to the amount of government bonds it has roughly committed to buying each month, Jasani said.