CHENNAI: Indian equity benchmark indices snapped their six-day winning run on Friday ending lower, as investors booked profits in banking, FMCG and metal stocks. The caution also reflected global sentiment ahead of US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium later in the day.
The Sensex fell nearly 690 points to close around 81,517, while the Nifty slipped below 24,900, ending down about 0.6%. Selling was broad-based, with financials, IT, FMCG, metals and oil & gas stocks declining between 0.5% and 1%.
Market analysts say the correction was expected after a sustained rally, with traders unwilling to carry large positions ahead of a crucial Fed signal on interest rates. Foreign institutional selling and concerns over possible new U.S. trade measures against India also weighed on sentiment.
On the stock front, Hero MotoCorp lost about 2% after a leadership reshuffle, Mazagon Dock slipped nearly 1% following a rating downgrade, while Texmaco Rail gained over 2% after bagging a Rs 1,000 crore order.
The week’s trend
Monday–Tuesday (Aug 18–19): The Nifty largely moved sideways, hovering around the 25,000 mark, with limited momentum.
Wednesday (Aug 20): The rally picked up pace. The Sensex gained over 200 points and the Nifty crossed 25,000, led by strong buying in IT, FMCG and realty stocks.
Thursday (Aug 21): Indices held firm but gains were modest. Cement stocks underperformed, though overall sentiment stayed positive.
Friday (Aug 22): The rally lost steam. Profit-taking and global caution led to the first meaningful fall of the week.
Outlook
Friday’s decline is being seen more as a healthy correction than a change in trend. Markets had run up for six straight sessions, and traders preferred to lock in profits before Powell’s Jackson Hole address.
According to market analysts, investors worldwide are awaiting signals on whether the US Fed will hint at a rate cut in September or maintain a cautious stance due to inflation risks. "A dovish speech could revive buying interest in Indian equities, while a guarded tone may keep markets volatile next week," said an senior analyst with a foreign brokerage.