Markets Snap 3-Day Gaining Streak, Sensex Nearly 400 Points Down, Nifty Ends Under 25,350
Analysts said the Fed’s policy stance fell short of dovish expectations, leaving investors awaiting more clarity on the trajectory of US monetary policy.
Dalal Street broke away from its 3-day winning streak and ended trading on Friday in red. The BSE Sensex settled a little above 82,600, tanking close to 400 points, while the NSE Nifty50 ended the day under 25,350, crashing almost 100 points.
On the 30-share Sensex, Adani Ports, SBI, NTPC, Bharti Airtel, and Asian Paints emerged among the gainers. Meanwhile, the laggards included HCL Tech, ICICI Bank, Trent, Titan, and M&M.
In the broader markets, the Nifty Financial Services dominated after it bled 0.64 per cent. Sectorally, the PSU Bank index stood out after it climbed 1.28 per cent while, the Private Bank and Consumer Durables indices slipped 0.65 per cent each.
"The Indian equity market witnessed profit-booking after a sustained multi-session rally, driven by anticipation of the FED entering an easing cycle. Positive developments in US-India trade negotiations and improved global liquidity conditions continued to offer a cushion to investor sentiment," explained Vinod Nair, Head of Research, Geojit Investments Limited.
At 9:26 AM, the Sensex was down 241 points, or 0.29 per cent, at 82,772, while the Nifty slipped 63 points, or 0.25 per cent, to 25,360. Analysts said the Fed’s policy stance fell short of dovish expectations, leaving investors awaiting more clarity on the trajectory of US monetary policy.
Market analysts noted that the Nifty’s ability to sustain above the 25,400 level in the previous session reflected underlying confidence. However, the 25,500–25,600 zone is seen as a strong resistance, with support placed at 25,300–25,100 for any near-term pullback.
“Market is on an uptrend and is well positioned to set new records soon. Fundamentals, technicals and sentiments are favourable for a steady uptrend. Earnings are likely to improve from Q3 onwards. Technically, short covering is happening and can accelerate,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services. From a sentiment standpoint, he added, the possibility of a US-India trade deal without penal tariffs and with reduced reciprocal tariffs is a positive.
On the flows front, foreign institutional investors bought equities worth Rs 366 crore on Thursday, while domestic institutional investors were net buyers to the tune of Rs 3,326 crore, according to exchange data.
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