Fri Sep 13 00:16:00 UTC 2024: ## Indian Stock Markets Take a Breather After Record Rally

**Mumbai, Sep 13 (ThePrint):** The Indian equity markets took a breather on Friday after a record-breaking rally the previous day, ending marginally lower as profit-taking emerged.

The benchmark Sensex, which comprises 30 of India’s largest companies, fell by 71.77 points or 0.09% to close at 82,890.94. The Nifty, a broader index representing 50 companies, dropped by 32.40 points or 0.13% to 25,356.50.

This comes after a week where both indices saw significant gains, with the Sensex jumping 1,707.01 points or 2.10% and the Nifty climbing 504.35 points or 2.02%.

Analysts attribute the dip to profit-taking, particularly in sectors like power, oil & gas, and FMCG. They believe investors may be adopting a wait-and-watch approach ahead of next week’s US Federal Reserve policy meeting.

Adani Ports led the Sensex losers, declining 1.37%. Other prominent decliners included ITC, Bharti Airtel, NTPC, Maruti, Asian Paints, Sun Pharma, Power Grid, Hindustan Unilever, and Larsen & Toubro.

However, Bajaj Finserv, Bajaj Finance, IndusInd Bank, Tata Steel, Axis Bank, and Tech Mahindra saw gains.

The broader market also saw positive movement, with the BSE smallcap gauge rising 0.95% and midcap gaining 0.48%.

Despite the day’s dip, market experts remain optimistic. They cite factors like higher liquidity from foreign institutional investors and a potential US Federal Reserve rate cut, driven by a fall in US 10-year yield, as positive indicators for the Indian market.

This cautious optimism is further fuelled by India’s retail inflation, which remained below the Reserve Bank of India’s target for the second consecutive month. While it edged up to 3.65% in August, it was still below the RBI’s median target of 4%.

Overall, the Indian equity market remains strong, even after Friday’s slight pullback. The market’s future trajectory will likely depend on the outcome of the upcoming US Fed policy meeting and the broader global economic outlook.

Read More