The bearish forces pulled the markets significantly down to close the week on red terms.
Today, Indian equity markets saw a sharp correction following a six-day rally, with both the Sensex and Nifty ending well below yesterday's levels. The decline was expected in the face of global uncertainty and conservative investor sentiment preceding critical events.
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Banking, metals, FMCG, and realty were some of the major drags on the indices. Nifty Bank index dropped by almost 1%, with financial stocks more or less in the red. Metal stocks also faced selling, showing global concerns impacting commodity-linked segments.
While most of the sectors moved lower, Nifty Media and Nifty Pharma defied the trend by posting mild gains. The major gainers among stocks were Bharat Electronics, M&M, Maruti Suzuki, Sun Pharma, and Trent, whereas major laggards were Asian Paints, ITC, UltraTech Cement, Adani Ports, and HCL Tech.
Despite the losing trades all around, stocks such as Apollo Hospital reached a 52-week high in the session. In the broader market, the Nifty MidCap100 index also edged up marginally, reflecting selective buying among mid-caps despite general weakness. Nifty Small-cap 100 traded unchanged.
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The decline was largely caused by prudence before US Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium. The investors were cautious of possible signals on world monetary policy and interest rates. Furthermore, rumours on possible US tariffs under the Trump administration contributed to volatility, particularly for trade-sensitive sectors.
Foreign portfolio investors went on a buying spree but domestic institutional participation could not neutralise the selling pressure the market witnessed due to cues from overseas markets. The overall advance-decline ratio on the National Stock Exchange was positive for declines, indicating broad-based negativism.
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Vikram Solar's initial public offering allotment took place today, attracting investor interest despite the weakness in the market. The issue witnessed strong demand, reflecting demand for new listings as healthy even during volatile market conditions.
In short, Indian equities markets concluded a winning spurt, closing sharply lower on account of sectoral weakness and global uncertainty. Sector divergences and the fall in major indices indicate increased investor wariness. In the days to come, investor attention is expected to stay centred on global monetary signals and trade policy updates.
