Indian equity benchmarks opened in the red on Thursday, snapping a two-session winning streak as investors opted to book profits amid a lack of positive triggers. The decline mirrored mixed trends in global markets.
Key Indices Witness Sharp Decline
The 30-share BSE Sensex opened lower and continued to slide, dropping 306.88 points or 0.41 per cent to 74,085.49 in initial trade. Similarly, the broader NSE Nifty fell 91.95 points or 0.41 per cent to 22,488.65. This pullback came after both indices had posted significant gains in the previous two trading sessions.
From the Sensex basket, several major companies faced selling pressure. Mahindra & Mahindra, Tata Motors, Bajaj Finserv, IndusInd Bank, and Larsen & Toubro were among the top laggards. However, the losses were partially offset by gains in shares of Power Grid, Asian Paints, and Sun Pharma.
Mixed Global Cues and Sectoral Performance
The market mood was dampened by a cautious stance in international markets. In Asian trade, Seoul and Tokyo quoted lower, while Shanghai and Hong Kong traded with gains. Wall Street had ended on a mixed note in the overnight session on Wednesday.
Back home, most sectoral indices reflected the bearish sentiment. The Nifty Auto, Nifty Metal, and Nifty Financial Services indices all traded in negative territory. In contrast, the Nifty FMCG index managed to stay afloat with minor gains.
Analysis of Market Movement and Future Outlook
Market analysts attributed the early trade decline primarily to profit booking after the recent rally. The absence of fresh domestic catalysts and a wait-and-watch approach ahead of key global economic data also contributed to the subdued activity.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted that the market is currently in a consolidation phase. He pointed out that while the long-term outlook remains positive due to strong domestic macroeconomic fundamentals, short-term volatility is expected to continue due to high valuations and global uncertainties.
In the previous session on Wednesday, the BSE Sensex had jumped 676.69 points or 0.92 per cent to settle at 74,392.37. The Nifty had climbed 203.30 points or 0.91 per cent to end at 22,580.60. The sudden reversal on Thursday highlights the ongoing volatility and sensitivity of the markets to both domestic and international cues.
Meanwhile, global oil benchmark Brent crude climbed 0.16 per cent to USD 83.16 a barrel. Foreign Institutional Investors (FIIs) were net buyers on Wednesday, purchasing equities worth Rs 1,071.93 crore, as per exchange data. This sustained FII buying had provided support during the recent rally.
Going forward, traders will be closely monitoring corporate earnings, movements in the rupee against the dollar, and the trend in global markets for further direction. The immediate support for the Nifty is now seen around the 22,400 level.
