After six consecutive days of gains, Indian stocks finally took a breather. The Sensex fell 344 points, or 0.41%, to close at 84,211, while the Nifty fell 0.37% to settle at 25,795 as investors booked gains near record highs.
The rally was driven by optimism about easing global trade tensions and hopes for a recovery in corporate profits. But today’s break showed traders turning cautious.
On the Sensex, Hindustan Unilever, Ultratech Cement, Kotak Bank, Adani Ports and Titan led the declines, each down between 1.5% and 3%.
The financial sector weighed heavily with Nifty Bank down 0.7%, while FMCG stocks fell after subdued quarterly earnings from HUL and Colgate.
The broader markets also saw mild pressure; mid- and small-cap indices fell about 0.2%.
Still, both benchmarks managed a 0.3% gain this week, extending a six-session advance that added nearly 3% in total.
Raw impact:
Oil prices stabilized on Friday after yesterday’s jump and remained on track for a weekly gain, as US sanctions on Russia’s biggest oil producers increased concerns about global supply.
Brent crude fell 0.15% to $65.89/barrel
WTI fell 0.15% to $61.70/barrel
Currency update:
The Indian rupee gave up early gains to close largely unchanged at ₹87.8450 against the dollar as optimism over trade talks waned following cautious comments from an Indian minister. The dollar index rose 0.1% to 99.045.
Market experts say investors have turned defensive after crude oil prices turned higher and the HSBC Composite PMI for October fell to its lowest level since May, signaling slower growth in the services sector.
However, production showed some improvement due to input cost relief and the recent VAT relief.
Technically, analysts see support around 25,700 and resistance around 25,850 on the Nifty. The next few sessions may remain volatile, but a recovery towards 26,000 cannot be ruled out.
This is Neha Vashishth, and you’ve been listening to ET Market Watch. Stay tuned for more market insights and analysis next week.
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