Sensex and Nifty Pare Gains as Weak Global Cues Hit Markets

The Indian equity market saw a volatile Friday session as early gains faded and investors booked profits at higher levels. After touching fresh highs, Sensex slipped 450 points from the day’s peak, settling at 83,683.14, while Nifty fell below the psychologically significant 25,650 level.

Profit-taking and weak global sentiment dominated market action, influencing key sectors and heavyweight stocks.

Market Performance

• Sensex pared 450 points from the session high, highlighting volatility in the second half of trading.
• Nifty fell below 25,650, reflecting cautious investor mood despite earlier gains.
• Key losers included select IT and industrial stocks, which saw declines up to 5%.

The movement shows that markets are sensitive to global developments while domestic profit-booking remains a factor at record levels.

Main News

Investor sentiment turned cautious as weak cues from international markets weighed on local trading:

• Wall Street futures slipped up to 1.4%, signaling a weak start for U.S. equities.
• Regional bank concerns intensified, with shares of Zions Bancorporation tumbling 13% due to unexpected loan losses. Western Alliance fell nearly 11% amid legal disclosures, adding to the cautious tone.
• Across Asia, major indices including Japan’s Nikkei 225, Shanghai SSE Composite, and Hong Kong Hang Seng fell up to 3%, reinforcing a global risk-off mood.

Back home, profit-booking amplified the slide, particularly in stocks that had rallied to fresh highs earlier in the week.

Sector-wise Highlights

• IT stocks came under pressure, dragging the Nifty IT index down 1.5%.
• Wipro fell nearly 5% after its September-quarter results underwhelmed investors.
• Infosys shares also declined post its second-quarter earnings announcement.
• Other major laggards included industrial and metal stocks, with declines up to 5%.

The combined effect of weak global sentiment and domestic profit-booking set the tone for the day’s market correction.

Summary

Friday’s trading highlights a market in flux, balancing between record highs and cautious investor behavior. Sensex trimmed 450 points from the session peak, while Nifty dropped below 25,650, reflecting profit-taking and global cues.

The session underscores how domestic markets continue to react to international developments and sector-specific movements, emphasizing the sensitivity of headline indices to both global and local factors.