The Sensex witnessed a notable surge on Wednesday, soaring by 357.59 points or 0.52%, reaching a new record of 69,653.73.
Early Signs of Caution
However, the bullish momentum was short-lived as both Sensex and Nifty faced a downturn on Thursday, breaking their seven-day winning streak.
Factors Behind the Decline
Foreign institutional investors played a significant role in the market reversal, selling shares worth Rs 79.88 crore. Analysts attribute the decline to selling pressure from foreign investors and tracking cues from the Asian markets.
Market Figures: Sensex and Nifty Numbers
Notable Declines
The 30-share BSE Sensex experienced a fall of 211.21 points (0.30%) to 69,442.52, while the broader Nifty declined by 58.95 points (0.28%), settling at 20,878.75.
Performance of Major Constituents
Key constituents like Hindustan Unilever, Bharti Airtel, ICICI Bank, and Bajaj Finance recorded losses of up to 2.03%. Conversely, companies like PowerGrid, UltraTech Cement, Asian Paints, and NTPC defied the trend and registered gains.
Market Snapshot
In early trade, 18 shares of the 30-stock Sensex were in the red, while 24 Nifty firms saw losses.
Expert Insights and Future Outlook
Expert Opinion on Volatility
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, notes that despite favorable factors like declining US bond yields, India’s GDP growth, and falling crude prices, market dips can be expected due to profit booking at higher levels.
Anticipation of RBI Decision
The Reserve Bank of India is expected to maintain the current interest rate status in its bi-monthly monetary policy decision scheduled for Friday.
Global Market Overview
Asian and European Markets
In Asian markets, Nikkei 225 traded lower by 1.79%. European markets, on the other hand, finished higher on Wednesday, with France’s CAC 40 closing 1.71% higher and Germany’s DAX ending 0.75% higher. London’s FTSE 100 gained 0.21%.
Mixed Performance in the US
The US markets closed on a mixed note on Wednesday, with the S&P 500 registering a loss of 0.39%, while Brazilian stocks gained 0.08%.
Crude Oil Prices
Global oil benchmark Brent crude was trading 0.47% higher at USD 74.65 a barrel on Thursday.
Summary of Market Events
In summary, the seven-day winning streak of Sensex and Nifty was halted by selling pressure from foreign institutional investors and cautious market sentiment. The market’s response to upcoming events, including the RBI’s monetary policy decision and global cues, will be closely monitored.
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