Profit-booking in banks drags Sensex, Nifty to close week in red

Indian equity indices closed the week in red, with BSE Sensex dropping 455.59 points and NSE Nifty 50 slipping 65.35 points. The decline was attributed to broad-based profit-booking and selling pressure in private banks and financial stocks.

Benchmark domestic equity indices closed the week in red, following broad-based profit-booking and selling pressure in key sectors, particularly private banks and financial stocks. The BSE Sensex dropped 455.59 points, or 0.58 per cent, to finish at 78,499.17 points, while the NSE Nifty 50 slipped 65.35 points, or 0.27 per cent, to close at 24,570.65 points.

Expert Analysis on Market Trends

Vinod Nair, Head of Research, Geojit Investments Limited sounded a cautious note, stating that, "Market sentiment remains measured as the absence of a definitive geopolitical resolution in the Middle East continues to keep crude oil prices volatile." He noted that gold has strengthened on renewed safe-haven demand and a softer US dollar, with investors closely tracking the upcoming US non-farm payrolls data for further clarity on the Fed's policy trajectory. "Domestically, earnings from several industry bellwethers have been in line with or ahead of expectations, providing a constructive backdrop for sector-specific optimism and investment opportunities. Notably, SBI's strong performance, underpinned by healthy credit growth, improving asset quality and resilient margins, has reinforced confidence in the banking and PSU banking segments, offering an important pillar of support to the broader market outlook," he said.

Analyzing the benchmark movements, Riyank Arora, Associate Vice President - HNI & Derivatives at Hedged.in, said, "Indian equity markets ended today's session on a weak note, with benchmark indices witnessing profit booking after the recent upmove. Selling pressure in select heavyweight stocks weighed on market sentiment, leading to a cautious close." On the market trajectory, Arora mentioned that the market witnessed a healthy corrective session after recent gains with "profit booking emerging at higher levels. As long as key support levels remain intact, the overall trend continues to favour the bulls."

Commenting on the trading action, Market Analyst Vipin Dixena said, "Indian equity markets ended today's session on a weak note, with selling pressure visible across key sectors, particularly private banks and financial stocks. Rising crude oil prices remained an additional concern for investors, while the broader market also witnessed some profit booking after the recent upmove."

Commodities and Global Markets

At the time of reporting, Brent Crude stood at USD 81.99, reflecting a drop of USD 0.50 (-0.60%), while Crude Oil stood at USD 77.07, down by USD 0.22 (-0.29%). Conversely, Gold showed positive performance, trading at USD 4,308.18 with a gain of USD 68.33 (+1.61%).

Global cues also presented a mixed picture across Asian markets, where the Nikkei 225 declined 0.29 per cent to 65,496.00 points, GIFT Nifty fell 0.40 per cent to 24,649.00 points, KOSPI lost 0.60 per cent to 6,258.77 points, and Taiwan Weighted dropped 0.39 per cent to 44,225.91 points. On the other hand, Hang Seng gained 0.58 per cent to 25,679.00 points, Straits Times added 1.04 per cent to 5,698.43 points, and Shanghai Composite rose 1.01 per cent to 3,940.04 points. In US markets, Dow Jones Futures traded higher by 0.05 per cent at 53,912.34 points, whereas S&P 500 declined 0.18 per cent to 7,709.96 points and Nasdaq fell 0.06 per cent to 26,348.35 points. (ANI)

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)