India’s equity market snapped a six-day winning streak and fell sharply on Friday as investors allegedly rushed to book profits ahead of US Federal Reserve Chair Jerome Powell’s much-awaited speech at the Jackson Hole symposium, which is expected to provide insights into the global liquidity outlook.
The BSE Sensex plunged 693.86 points, or 0.85 per cent, to settle at 81,306.85, while the broader Nifty declined to 24,870.10, down 213.65 points, or 0.85 per cent. Before Friday’s fall, the market had registered a strong buying streak for six sessions, fuelled by optimism over Goods and Services Tax (GST) reforms and the S&P Global Ratings upgrade.
“Investor sentiment turned cautious ahead of the US Fed Chair’s speech at the Jackson Hole symposium, which is expected to provide critical insights into the global liquidity outlook and future interest rate trajectory. The US using trade tariffs on India as a strategic tool in its stance against Russia has raised near-term concerns among institutional investors,” said Vinod Nair, Head of Research, Geojit Investments Limited.
Sudeep Shah, Head of Technical Research and Derivatives at SBI Securities, said that concerns over impending 25 per cent US tariffs unsettled sentiment, with the White House Trade Advisor Peter Navarro warning that the secondary tariffs against Indian goods will kick in from 27 August.
“As we head to the monthly expiry week, investors will be keenly awaiting US Federal Reserve Chair Jerome Powell’s speech at the annual Jackson Hole symposium, which can significantly influence September’s monetary policy decision,” stated Shah.
Sector-wise, all major indices closed in the red except the pharma and consumer durables pack. In the Nifty50 pack, Hero MotoCorp, HCL Technologies, Tata Steel, HDFC Bank, Grasim Industries and Asian Paints were among the major laggards, declining between 2 per cent and 2.55 per cent.
Ajit Mishra, SVP, Research, Religare Broking, said that domestic profit-booking after the recent rally and a pause in fresh FPI inflows further weighed on sentiment. “With global markets awaiting central bank cues, any unexpected commentary or data could trigger heightened volatility.”
“On the technical front, the index (Nifty) has moved closer to its key short-term support at the 20-day EMA around 24,800. A decisive breach below this level could open the door for a deeper correction towards the 24,600 zone. On the upside, 25,100–25,250 remains the immediate resistance cluster. For the next session, focus on banking and IT for potential weakness, while autos and select cyclicals could offer stock-specific opportunities,” added Mishra.