Experts believe that while domestic fundamentals remain strong, short-term volatility may persist due to global uncertainty, crude price movements, and foreign fund flows. Investors are advised to remain selective, focusing on energy, infrastructure, and consumer discretionary sectors, which are expected to show relative resilience.
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Domestic equity benchmark end in the red on Thursday, extending early losses as weak global cues and profit booking dragged indices lower across most sectors. The Sensex fell 593 points, or 0.7%, to close at 84,404, while the Nifty 50 declined 176 points to settle at 25,878.
Markets opened on a subdued note following overnight weakness in global equities after U.S. Federal Reserve Chair Jerome Powell hinted that the recent 25-basis-point rate cut might be the last one this year. Investor sentiment also remained cautious ahead of key earnings and macroeconomic data releases due later this week.
In the broader markets, the BSE MidCap index ended flat, while the SmallCap index settled marginally lower, indicating selective buying amid overall weakness.
Sectoral Performance
Energy:
The Nifty Energy index was the only notable gainer, supported by firm crude oil prices and strong buying in ONGC, Reliance Industries, and Coal India. The sector benefited from expectations of stable refining margins and steady demand in the winter season.
Financials and Banking:
Nifty Financial Services and Bank Nifty declined nearly 0.7%, weighed down by profit-taking in major private lenders and NBFCs. Bajaj Finance, HDFC Bank, and Axis Bank saw notable losses as traders booked profits after recent rallies.
IT:
The Nifty IT index fell around 1.2%, following a sell-off in global tech stocks amid concerns over slowing enterprise spending in the U.S. Infosys, Tech Mahindra, and TCS were among the major laggards.
Auto:
The Auto index slipped 0.6%, with pressure seen in two-wheeler and component stocks. However, Maruti Suzuki bucked the trend, gaining over 0.8% after strong festival season sales data.
Metals:
The Nifty Metal index eased 0.4%, as weak Chinese factory output data dampened sentiment. Hindalco and JSW Steel led the declines.
Pharma:
The Nifty Pharma index lost 0.5% amid mixed quarterly results and muted export guidance from select companies.
Top Movers
Gainers:
Larsen & Toubro (L&T) was the top performer on the Sensex, rising 0.91% after securing a major infrastructure contract. Other gainers included BEL, Maruti Suzuki, Adani Ports, and Titan, which saw selective buying interest.
Losers:
On the downside, Bharti Airtel, Power Grid, Tech Mahindra, Infosys, and Bajaj Finance were among the major drags, each falling over 1%.
Market View
Analysts said the Nifty continues to face resistance around the 26,000 mark, while strong support lies near 25,800. “Selling pressure persisted across large-cap counters as traders turned cautious after the Fed’s policy remarks. The market could remain range-bound in the near term with a mild downward bias,” said Vinod Mehta, Senior Research Analyst, Axis Securities.
Global market sentiment also turned fragile after Powell’s comments tempered expectations of further rate cuts this year. Asian markets ended mixed, while European indices traded lower in early deals.
Experts believe that while domestic fundamentals remain strong, short-term volatility may persist due to global uncertainty, crude price movements, and foreign fund flows. Investors are advised to remain selective, focusing on energy, infrastructure, and consumer discretionary sectors, which are expected to show relative resilience.