The Indian equity indices on Friday closed lower shedding the entire week’s gains and ended in the red, down  0.74%. In Friday’s trade on May 3, the Nifty 50 closed 172.35 points or 0.76% lower at 22,475.85. Sensex plunged 733 points or 0.98% to close the day’s trading at 73,878.15. The significant losers included Larsen & Toubro, Maruti Suzuki, Nestle India, Reliance Industries, and Bharti Airtel. The Indian Volatility Index (India VIX) shot up 8.6%, indicating investor uncertainty and fear in the market. 

Sharp drop in sectoral indices 

The Nifty Midcap lost 180 points or 0.35% to finish the session at 50,935.15. Following the trend, Nifty Bank closed in the red, down 307.50 points or 0.62% at 48,923.55. 

On the sectoral front, realty and oil & gas pulled the indices lower. In the broader market, smallcap and midcap stocks closed in the red.

Investors cautious ahead of US non-farm payroll data 

Market experts believe that global data expectations also made Indian shareholders cautious in Froday’s trade. “Profit booking and a degree of caution ahead of the release of the US non-farm payroll resulted in selling pressure in the market. However, the absence of significant negative surprises in Q4 earnings thus far, along with a decline in oil prices, might help to mitigate the downside. Though the correction was broad-based, the large-cap stock was the key underperformer due to the moderation of FII’s exposure to the domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.

Markets gave up gains for the week 

The sharp drop in the index has nullified the gains made over the past four sessions. “It however managed to hold above the support zone represented by the short-term moving average i.e. 20 DMA. We recommend a selective approach and suggest considering hedged positions if the Nifty fails to maintain the 22,400 level. Besides domestic factors, it’s crucial for traders to closely monitor the performance of the US markets for further guidance,” said Ajit Mishra, senior vice president of Research at Religare Broking.