There was profit-booking pressure in the Indian stock market on Thursday, which put a break on the three-day rally.
highlights
- Market’s eyes fixed on RBI’s repo rate decision on Friday, fluctuations expected to increase
- 25,400-25,500 level is important for Nifty, the next move will be decided from here
- Market breakout or breakdown possible after decision on interest rates
There was profit-booking pressure in the Indian stock market on Thursday, which put a break on the three-day rally. Nifty 50 closed with a fall of about 0.52 percent. During this period, Trent was the top performer of Nifty, while Hindalco was the biggest loser. The Sensex closed at 83313.93 with a fall of 0.60 percent on Thursday. Nifty Bank also slipped and closed around 60,000 after a gain of three sessions, which was especially affected by the weakness in the shares of ICICI Bank and IndusInd Bank.
At the same time, Nifty Midcap and Nifty Smallcap indices also closed with a decline after three days of rise. The smallcap index recorded a decline of more than 1 percent. On the sectoral front, except Nifty PSU Bank, almost all the sectoral indices closed in the red. Nifty PSU Bank closed with gains for the fourth consecutive session, led by shares of Bank of India and Union Bank.
decline in nifty metal
Nifty Metal was the weakest sector and fell more than 1 percent. Heavy selling was seen in shares of Vedanta and Hindustan Zinc in this sector. The Nifty Auto index also fell after three sessions of gains, with most of its stocks in the red. There was a sharp fall of about 10 percent in the shares of Tube Investments. Apart from this, Nifty Realty index also remained under pressure, which was affected by the weakness of shares of Brigade Enterprises and Anant Raj.
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Fall in IT shares
Nifty IT closed down for the second consecutive session, with Mphasis and OFSS being the biggest draggers. Nifty Energy also declined after three sessions of rally, dragged down by shares of Inox Wind and SJVN. Nifty FMCG index also recorded a decline, with VBL and UBL falling around 2 per cent. At the same time, Nifty Pharma remained weak for the second consecutive session and Glenmark and Aurobindo Pharma were its big losers.
Expert opinion
According to Ajit Mishra of Religare Broking, there is a need to look at the current movement of the market wisely instead of panicking. He says that if the market is successful in staying above the major average levels for a while, then it will be a positive sign. He said that the zone of 25400–25500 is very important. As long as Nifty holds this range, healthy consolidation can be seen in the market.
Ajit Mishra believes that if Nifty crosses the level of 26,000, then the market can move towards new record high. His advice to investors is to maintain the buy on dips strategy while staying above 25,400, as this level indicates the strength of the market.
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