Sensex dips 151 points, Nifty slips below 25,150 amid profit-taking

The Indian stock markets closed lower on Thursday, breaking their recent winning streak amid profit-taking and cautious sentiment ahead of key US economic data. The benchmark BSE Sensex ended 151.48 points or 0.18 per cent lower at 82,201.16, while the Nifty 50 fell 53.60 points or 0.21 per cent to close at 25,145.10.

The day’s trading session was marked by volatility, with the Nifty opening higher at 25,250.50 and touching an intraday high of 25,725, before succumbing to selling pressure. Shrikant Chouhan, Head of Equity Research at Kotak Securities, said, “Today, the benchmark indices witnessed intraday profit-booking at higher levels… A bearish candle on daily charts and lower top formation on intraday charts indicating weak sentiment, is likely to continue in the near future.”

Among the top gainers on the NSE, Titan surged 3.11 per cent, followed by LTIMindtree (1.44 per cent), Wipro (1.16 per cent), BPCL (1.11 per cent), and ITC (0.97 per cent). On the flip side, Cipla (-1.46 per cent), Dr Reddy’s (-1.28 per cent), Coal India (-1.28 per cent), Reliance (-1.26 per cent), and Britannia (-1.22 per cent) were the top losers.

The broader market showed a mixed picture, with 2,260 stocks advancing and 1,667 declining on the BSE. A total of 322 stocks hit their 52-week highs, while 30 touched their 52-week lows. The market breadth remained positive despite the Nifty closing in the red.

Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, said, “Markets ended weak in a volatile trading session, led by profit-taking in Reliance Industries. Globally, most of the equity indices were sluggish to mixed, and are awaiting key US data on Friday, which would provide some hint on the Federal Reserve chief’s likely stance on the interest rate in this month’s policy announcement.”

Sector-wise, 7 out of 13 sectors ended in positive territory, led by media stocks, while realty stocks experienced the most significant declines. Avdhut Bagkar, Technical and Derivatives Analyst at StoxBox, observed, “The broader indices displayed a stark difference in comparison to the frontlines, as the broader market made some gains during the day.”

In stock-specific news, Alembic Pharma soared by approximately 3 per cent after receiving approval from USFDA for its new drug application.

The market sentiment was influenced by negative Asian market cues, as investors remained cautious ahead of key economic data releases. Oil prices and global factors continued to play a role in shaping market dynamics.

As the markets navigate through mixed signals and sector rotations, analysts suggest that traders should focus on level-based trading strategies. Chouhan added, “For the downside, 25100/82000 would be the key support zone. Below the same, the Nifty could slip till 25000-24970/81700-81600. On the flip side, 25275/82600 would be the crucial resistance area for the bulls.”