Benchmark Indices Fall Amid Volatility
After a week-long triumph, the Indian equity market faced selling pressure and closed with significant losses. The Sensex was down 241.79 points, or 0.36%, to close at 67,596.84, and the Nifty was down 59 points, or 0.29%, to close at 20,133.30. About 1,645 shares rallied, while 2,005 shares declined and 167 shares ended flat.
The top losers on the Nifty were Hindalco Industries, Jio Financial Services, HDFC Bank, Bharti Airtel, and Adani Ports. The top gainers included Titan Company, Mahindra & Mahindra, BPCL, HDFC Life Insurance Company, and Power Grid Corporation of India. Among sectors, the PSU Bank index rose 3.4%, the auto and FMCG indices gained 0.5%–0.8%, while the reality and metal indices fell by 1%. The bank, IT, and pharma indices were each down 0.5%.
The BSE Midcap and Smallcap indices were dragged down by 0.25% and 0.5%, respectively. According to Vinod Nair, Head of Research at Geojit Financial Services, investors were cautious ahead of macro-economic data such as central banks” policy meeting outcomes, August inflation, manufacturing, and service industry data. Investors also lost confidence due to the expectations of a demand resurgence in China and crude supply cuts.
According to Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities, consolidation may persist in the short term due to the anticipation of the outcome of the US Fed meeting. Shah expects support at the 20,100 level and resistance at 20,200.
