Equity benchmarks Sensex and Nifty fell sharply by nearly 1 per cent on Friday, halting a six-day rally as investors grew cautious ahead of US Federal Reserve chairman Jerome Powell’s Jackson Hole speech.
The decline was also triggered by renewed global trade uncertainties and tariffs imposed by the Trump administration.
The 30-share BSE Sensex dropped 693.86 points, or 0.85 per cent, to close at 81306.85, after sinking 708.94 points to 81291.77 during the day. The broader 50-share NSE Nifty fell by 213.65 points, or 0.85 per cent, to end at 24870.10.
Market sentiment weakened as investors awaited Powell’s address, with growing concerns over global trade tensions and geopolitical risks. Domestic profit-booking following the recent rally and a pause in foreign portfolio investment (FPI) inflows further dampened sentiment.
Ajit Mishra, SVP of Research at Religare Broking, noted, “Market sentiment turned cautious ahead of Powell’s speech and concerns over global trade uncertainties”.
From the Sensex pack, major losers included HDFC Bank, RIL, Asian Paints, UltraTech Cement, Tata Steel, and Tech Mahindra. M&M, Maruti, Bharat Electronics, and Sun Pharma were among the gainers.
The BSE Smallcap index fell 0.35 per cent, while the Midcap index dropped 0.23 per cent. Sector-wise, the metal index fell 1.27 per cent, commodities 1.08 per cent, and Bankex 1.06 per cent. Oil & Gas dropped 0.80 per cent, while the Focused IT and IT sectors both slipped 0.77 per cent. In contrast, healthcare, telecommunication, and capital goods sectors saw gains.
On a weekly basis, the Sensex rose 709.19 points, or 0.87 per cent, and the Nifty gained 238.8 points (0.96 per cent). During the six-day rally, the Sensex climbed 1765 points, or 2.14 per cent, and the Nifty gained 596 points or 2.4 per cent.
On Thursday, the Sensex climbed 142.87 points, or 0.17 per cent, to settle at 82000.71, while the Nifty rose 33.20 points 0.13 per cent to 25083.75.
FIIs bought equities worth ₹1,246.51 crore on Thursday. Global oil benchmark Brent crude fell 0.24 per cent to $67.52 per barrel.
Asian markets, including the Kospi, Nikkei, Shanghai, and Hang Seng, finished in the green, while US markets closed lower on Thursday.