Indian equity benchmarks witnessed a significant pullback in Friday's trading session, retreating from near-record levels as investor optimism over a potential US-India trade deal faded. The Sensex and Nifty 50, after a strong rally in the previous session, succumbed to profit-booking and sectoral weakness.
BSE Sensex: Plunged 550 points (0.71%) to trade at 76,800.
Nifty 50: Slipped 150 points (0.58%) to trade below the 25,750 mark.
Sectoral Deep Dive: Who Dragged the Market?
The sell-off was broad-based, with several key sectors facing intense pressure.
Major Drags: FMCG and Healthcare stocks were among the top losers, leading the market decline. Private Bank stocks also contributed to the downward trend.
Limited Support: Gains in Media and Midcap stocks provided some cushion but were insufficient to offset the broader sell-off.
Resilient Performers: Metal and Energy sectors showed resilience, offering some support and limiting the overall market fall.
Why Did the Market Fall Today? Key Reasons
Fading Trade Deal Optimism: The primary trigger was the Indian government's silence on reports of an imminent US-India trade deal. This lack of confirmation led to disappointment and prompted investors to lock in profits from the recent rally.
Profit-Booking: With the indices hovering close to all-time highs, traders chose to book profits, leading to a natural market correction.
Subdued Global Cues: While Asian markets were mixed, the overall global sentiment remained cautious, contributing to the negative bias in Indian markets.
A Look Back: Thursday's Rally
For context, on Thursday, the Indian market had closed at fresh 52-week highs, driven by strong foreign inflows and optimism around a revival in corporate earnings. Expectations of robust festive demand and supportive government policies had fueled the upward move.
Global Market Check
S&P 500 Futures: Up 0.2%
Nasdaq 100 Futures: Up 0.4%
Dow Jones Industrial Average Futures: Up 0.2%
MSCI Asia Pacific Index: Up 0.4%
MSCI Emerging Markets Index: Up 0.5%
