The domestic equity market ended its six-session winning streak on Friday, as investor sentiment turned cautious ahead of the US Federal Reserve Chair’s speech at the Jackson Hole symposium.
The Sensex closed at 81,306.85, down 693.86 points or 0.85 per cent, after opening in negative territory at 81,951.48 against the previous session’s close of 82,000.71. The index hit an intra-day low of 81,291.77 amid widespread selling.
The Nifty settled at 24,870.10, down 213.65 points or 0.85 per cent.
Vinod Nair, Head of Research at Geojit Investments Limited, said, “The Indian equity market closed in the red, ending a six-session winning streak and erasing gains accumulated over the past three days. Investor sentiment turned cautious ahead of the U.S. Fed Chair’s speech, which is expected to provide critical insights into the global liquidity outlook and future interest rate trajectory.”
He added that the US’s use of trade tariffs on India as a strategic tool against Russia has raised near-term concerns among institutional investors.
Among Sensex constituents, Asian Paints, Ultratech Cement, Tata Steel, ITC, HCL Tech, Kotak Bank, TCS, HDFC Bank, Tech Mahindra, SBI, and ICICI Bank were major losers, while Mahindra & Mahindra, Maruti, and BEL also closed in the red.
Sectoral indices faced widespread selling pressure. Nifty Financial Services fell 256 points (0.96%), Nifty Bank dropped 606 points (1.09%), Nifty FMCG slipped 565.60 points, and Nifty IT declined 283.05 points (0.79%). Broader indices remained range-bound, with Nifty Small Cap 100 down 46 points (0.26%), Nifty Midcap 100 down 79 points (0.14%), and Nifty 100 slipping 209 points (0.82%).
The rupee weakened by 0.25, settling at 87.50 after initially gaining on GST reduction news, as persistent FII selling weighed on sentiment.
Jateen Trivedi of LKP Securities said, “Market focus now shifts to Powell’s speech at Jackson Hole, which is expected to guide the dollar index and influence rupee direction. Crude price movements and global risk sentiment will also play a crucial role in determining near-term trends. Technically, the rupee has immediate support near 87.75, while resistance is around 87.15, suggesting a volatile yet range-bound trade ahead.”
-IANS
