Market Performance
The Indian equity market opened strong today, with the Sensex climbing 254 points to 82,180 and the Nifty gaining 70 points to 25,178 in early trade. Support came mainly from IT stocks and fresh foreign fund inflows, driving optimism for a fifth straight session of gains.
However, the early momentum could not be sustained. By midday, profit booking in key sectors pushed the markets lower:
- Sensex fell over 500 points from the day’s high, reaching 81,747
- Nifty slipped below the 25,050 level to 25,045
Main News: Profit Booking Pulls Markets Lower
Investors began booking profits after recent gains, creating selling pressure in multiple sectors. The main contributors to the reversal included:
- Banking, Auto, FMCG, and Realty: These sectors faced notable selling pressure, with Nifty Bank snapping a six-session gaining streak.
- Global Market Cues: Weakness in global indices impacted domestic sentiment. Hong Kong’s Hang Seng declined nearly 1%, while U.S. markets ended lower yesterday.
- Crude Oil Prices: Brent crude rose 0.78% to USD 65.96 per barrel, raising inflation concerns and affecting market mood.
- Volatility Index: The India VIX climbed over 3% to 10.36, signaling increased market uncertainty and cautious trading.
Stock Movement
The pullback was broad-based, affecting both large-cap and mid-cap stocks, particularly those that had seen strong gains in recent sessions. IT stocks provided early support but could not offset the selling pressure in cyclical and defensive sectors.
Summary
Today’s trade reflects a classic profit-booking scenario, where early optimism is tempered by cautious selling and global market cues. Although the markets started the day on a strong note, selling pressure in banking, auto, FMCG, and realty sectors pushed indices lower by midday.
Investors tracked domestic and global cues, crude oil movements, and rising volatility, which together contributed to the temporary dip in Sensex and Nifty levels.
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