Sensex Today: Ahead of US Fed Chair Jerome Powell’s address at the Jackson Hole Symposium later tonight, mood was affected by profit-taking in banking, FMCG, and metal sectors, which caused equity markets to lose their six-day winning streak on Friday.
Investors across the world are looking for clues about the US Federal Reserve’s interest rate trajectory, especially in light of worries about tariffs.
At home, the BSE Sensex dropped 694 points (0.9%) to settle close to the day’s low at 81,307. The index’s high of 81,994 was slightly below the previous closing, and it fell as low as 81,292 throughout the day. After plunging to a low of 25,859, the NSE Nifty50 dropped 214 points to close at 24,870.
Both benchmarks finished the week higher despite Friday’s pullback; the Sensex increased 709 points and the Nifty gained 239 points.
Banking giants Kotak Bank, HDFC Bank, and SBI dropped around 1%, while Asian Paints, UltraTech Cement, Tata Steel, and ITC all had declines of almost 2% among Sensex components. Additionally, Reliance Industries pulled the index down.
The BSE MidCap fell 0.2%, while the SmallCap index fell 0.3%, reflecting the same weakness but with softer cutbacks in the wider market. With prospects of financial relief, Vodafone Idea stood out, recording its largest one-day increase in more than four months.
“The Nifty’s six-day winning streak ended due to lack of support from FIIs, who have refrained from significant cash market buying and continue to hold nearly 90% short positions in index futures,” Santosh Meena, Head of Research at Swastika Investmart, stated in response to the market activity. Along with the worldwide uncertainties around US economic statistics and the Fed’s rate outlook, market mood is still cautious due to the August 27 deadline for a potential 25% US tariff on India.
Technically speaking, Meena pointed out that the Nifty encounters strong resistance between 25,100 and 25,225, while a crucial support zone is between 24,850 and 24,700. The index may go towards its 200-DMA at 24,050 if it breaks below, indicating more negative pressure.
As investors seek clues about the Fed’s policy trajectory, Asian markets are mostly up. Australia’s ASX 200 fell 0.11 percent, while South Korea’s KOSPI increased 1.06 percent, Japan’s Nikkei 225 was up 0.13 percent, and Hong Kong’s Hang Seng increased 0.33 percent.
Ahead of Powell’s speech, US equities closed the night down. The Dow Jones Industrial Average declined 0.34 percent, the Nasdaq Composite sank 0.34 percent, and the S&P 500 fell 0.4%.
