BIZ DESK
The domestic equity market on Friday ended its six-session winning run as cautious sentiment prevailed ahead of U.S. Federal Reserve Chair Jerome Powell’s keynote address at the Jackson Hole symposium. Investors opted for profit-booking amid heightened concerns over global interest rates, persistent foreign fund outflows, and uncertainty surrounding trade frictions.
The benchmark Sensex tumbled 693.86 points, or 0.85 per cent, to close at 81,306.85, after opening in the red at 81,951.48 against Thursday’s close of 82,000.71. The index touched an intra-day low of 81,291.77 as selling pressure intensified in the final hours of trade. The Nifty 50 also slipped 213.65 points, or 0.85 per cent, to end at 24,870.10, erasing gains accumulated during the recent rally.
Vinod Nair, Head of Research at Geojit Financial Services, noted that the mood turned risk-averse as global investors awaited Powell’s speech, which is expected to set the tone for U.S. monetary policy in the months ahead. “Liquidity cues remain critical, and any signal of prolonged higher rates could weigh heavily on emerging markets like India,” he said.
He further highlighted that Washington’s recent use of tariff measures against India, in connection with its strategic push on Russia, has injected fresh uncertainty into trade dynamics and dampened institutional flows.
Heavyweights Drag Indices
Among Sensex constituents, Asian Paints, Ultratech Cement, Tata Steel, ITC, HCL Tech, Kotak Bank, TCS, HDFC Bank, Tech Mahindra, SBI, and ICICI Bank were the major laggards. Auto stocks also lost traction, with Mahindra & Mahindra and Maruti slipping into the red, while BEL also ended lower.
Sectoral Pressure Mounts
Broad-based weakness was visible across key indices:
- Nifty Financial Services fell 256 points (0.96%).
- Nifty Bank shed 606 points (1.09%).
- Nifty FMCG declined 565.60 points.
- Nifty IT lost 283.05 points (0.79%).
Broader market indices mirrored the trend, though losses were contained. Nifty Smallcap 100 dipped 46 points (0.26%), while Nifty Midcap 100 eased 79 points (0.14%). The Nifty 100 index dropped 209 points (0.82%).
Rupee, FIIs and Macro Cues
On the currency front, the rupee slipped 25 paise to close at 87.50 per dollar, reversing its early strength that came after GST rate adjustments in select segments. Persistent FII outflows weighed on the domestic unit, as global funds trimmed exposure to Indian assets in response to higher U.S. bond yields and risk-off sentiment.
Outlook: All Eyes on Jackson Hole
Market analysts believe that Powell’s speech will be crucial in determining the near-term trajectory for global equities, including India. A hawkish tone could reinforce expectations of tighter liquidity and sustain selling pressure from foreign investors. Conversely, dovish cues may revive buying momentum.
Meanwhile, domestic factors such as the progress of the monsoon, GST revenue inflows, and corporate earnings will also play a role in shaping sentiment. Analysts warn that volatility is likely to remain high in the short term, with defensive plays and selective stock-picking guiding investor strategy
