Sensex, Nifty end 6-day winning run, slip 1% ahead of Powell’s speech; key levels to watch

Domestic equity benchmarks Sensex and Nifty slipped nearly 1 per cent each on Friday and snapping their six-day winning streak, thanks to cautiousness that prevailed in the stock market, globally, ahead of the US Fed’s Jackson Hole symposium. Investors were keenly awaiting the Fed Chairman Jerome Powell’s speech for cues on US rate cuts. 

Sentiment also got weakened after US trade adviser Peter Navarro dismissed hopes of relief on Russian oil tariffs, saying the “road to peace” in the Russia-Ukraine conflict hinges on New Delhi.

At close, the BSE Sensex was down 693.86 points, or 0.85 per cent, at 81,306.85. The NSE Nifty50 fell 213.65 points, or 0.85 per cent, to settle at 24,870.10. The two indices entered a brief consolidation phase, before the next upmove, said analysts.

“The 50-pack Nifty continued to hold above the 50-day EMA, reinforcing the short-term uptrend. On the downside, support for the index lies at 24,800. A hold above this level would keep the trend intact, with scope for an advance towards 25,000–25,250 levels," said Rupak De, Senior Technical Analyst at LKP Securities.

Asian Paints emerged as the top loser on Sensex, with its shares falling 2.45 per cent to Rs 2,504. UltraTech Cement declined 1.94 per cent, followed by Tata Steel (down 1.92 per cent), ITC (down 1.80 per cent), HCL Technologies (down 1.68 per cent) and Kotak Mahindra Bank (down 1.68 per cent).

Five stocks namely HDFC Bank, Reliance Industries, ICICI Bank, ITC and Kotak Mahindra Bank, contributed heavily to the Sensex’s decline. 

Among the sectoral indices, the BSE Bankex slipped 1.06 per cent to end at 61,474.93, while the BSE FMCG index was down 1.04 per cent, closing at 20,522.15.

Overall, out of the 4,240 active stocks traded on the BSE, 1,777 ended with gains, while 2,308 settled lower and 155 remained unchanged. As many as 151 stocks scaled their 52-week highs during the session. A total of 53 others hit their 52-week lows. The session also saw 262 stocks locked at their respective upper circuits, and 165 others at lower circuits.

Vinod Nair, Head of Research, Geojit Investments Limited, said the Indian equity market closed in the red today, ending a six-session winning streak and erasing gains accumulated over the past three days. 

“Investor sentiment turned cautious ahead of the U.S. Fed Chair’s speech at the Jackson Hole symposium, which is expected to provide critical insights into the global liquidity outlook and future interest rate trajectory. The U.S. using trade tariffs on India as a strategic tool in its stance against Russia has raised near-term concerns among institutional investors,” Nair said.

Nair further said, "However strong domestic indicators offer support: the PMI has hit a record high and recently proposed indirect tax reliefs are expected to boost consumption, underscoring India’s economic resilience."