Indian equity benchmarks faced a decline on Thursday, ending a five-day winning streak. The Nifty dropped by 0.93%, down 222.25 points to close at 23,775.10, while the Sensex fell by 1.20%, losing 931.25 points to settle at 76,631.65. Analysts noted a range-bound movement with a negative bias in the Nifty’s technical outlook, signaling sustained selling pressure.
Experts emphasized the need for the Nifty to surpass 24,000 decisively for improved sentiment, while cautioning that failure to hold above 23,600 could expose the index to further downside pressure. Key frontline stocks like Jio Financial Services, InterGlobe Aviation, and Larsen & Toubro witnessed selling pressure, contributing to the market decline.
Despite the benchmark weakness, broader markets displayed resilience, with the Nifty MidCap and Nifty SmallCap indices closing positively. Banking stocks weighed down the market, with the Nifty Private Bank and Nifty Bank indices lagging behind. On the other hand, metal stocks provided some support, with the Nifty Metal index emerging as the top gainer among sectors.
Amid rising geopolitical tensions, investor sentiment turned cautious. Iran’s Parliament Speaker expressed distrust towards the US, citing violations of agreements and regional activities. Concerns over the ceasefire stability and oil price increases added to market volatility, prompting profit booking post the recent rally. The Indian rupee’s five-day rally halted, aligning with Asian peers, with expectations of trading within a range of 92.50 to 93.40 against the USD amidst global energy risks and domestic capital outflows.
