In a day marked by fluctuations and mixed sentiment, the stock markets experienced a decline as the Sensex and Nifty closed in the red. The BSE Sensex, India's benchmark stock index, registered a drop of 283.60 points, ending the trading session at 63,591.33. Similarly, the NSE Nifty 50, which tracks the performance of the National Stock Exchange, fell by 90.45 points to close at 18,989.15. This downtrend follows several sessions of gains and record-breaking highs.
The domestic equity markets continued to experience a downward trend for the second consecutive session, weighed down by uncertainty surrounding the monetary policy announcement by the United States Federal Reserve. Market participants were apprehensive about the potential impact of an extended period of high interest rates in the US. Additionally, weaknesses in key sectors, including metals, information technology (IT), and the automobile industry, exerted further pressure on the market.
Foreign Institutional Investors (FIIs) continued to divest shares in the domestic market, negatively impacting market sentiment. Prashanth Tapse, Senior VP (Research) at Mehta Equities, remarked, "Investors' sentiment was also primarily clouded by lingering concerns about corporate India's Q2 earnings, which, as of now, are uninspiring."
From a technical standpoint, the Nifty is expected to witness an upward movement only when it overcomes the significant resistance level at 19,289 points. Key support is situated at 18,823 points.
Sector-wise performance displayed a mixed picture, with the Nifty realty index advancing by approximately two percent, and the media index recording a one percent gain. On the other hand, the PSU Bank, pharma, and healthcare indices managed to close in the green. Notable losers included the Nifty metal index, which fell by over one percent, while the IT and auto indices experienced declines ranging from half a percent to one percent during the trading session.
In the Nifty50 pack, Adani Entertainment emerged as one of the prominent decliners with a fall of more than three percent. Other major stocks that witnessed significant declines included Coal India, Tata Steel, SBI Life Insurance Company, and Adani Ports, each falling by more than two percent. Asian Paints, Maruti Suzuki, Tata Consultancy Services, and JSW Steel were among the other key laggards in the session.
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