Nifty Ends At Day’s Low As Dollar Index Weighs, Banks Drag Market Down

The Nifty ended the day at its lowest point, driven by heavy selling pressure in banking stocks, particularly HDFC Bank. The primary factor behind this downturn was the rising Dollar Index, which, though a U.S. currency measure, has become a significant challenge for emerging market equities. A stronger Dollar typically signals weaker performance for these markets. Software stocks offered some resilience, with strength in companies like HCL Tech, Coforge, Sasken, and Mastek. Pharma shares also provided relief, indicating a shift towards defensive sectors amidst market volatility. Looking ahead, bears are expected to retest the crucial 23,828 level on the Nifty in Wednesday’s session. The market remains cautious, with investors closely monitoring global cues and the Dollar Index's impact on equities. Defensive plays may continue to gain traction in the short term, reflecting heightened uncertainty in the market.