SENSEX DROPS BY 453.85 POINTS AND NIFTY AT 22,023.35, DOWN 123 POINTS

Sensex on Friday dropped by 453.85 points to settle at 72,643.43 while Nifty declined by 123.30 points to settle at 22,023.35. Small- and mid-cap stocks, which are more focused on the domestic market, showed slight gains early in the trading session, with a 0.8% and 0.45% increase, respectively. The stress test outcomes for these mutual funds are crucial as they will reveal how well these funds can manage sudden redemption pressures.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the importance of the stress test results for mid and small-cap mutual funds. He emphasized the need for investors to focus on high-quality large-cap stocks with fair valuations rather than riskier small-caps with inflated valuations. From the BSE Sensex stocks, companies like Infosys, M&M, Axis Bank, HCL Tech, and Tech Mahindra opened lower, whereas Bharti Airtel, Power Grid, SBI, Tata Motors, and JSW Steel began with gains.

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