Stock market ends 6-session winning streak amid weak global cues

Mumbai, Aug 22 (IANS) The domestic equity indices settled in the negative territory on Friday, ending the six-session momentum amid overall selling as investor sentiment turned cautious ahead of the US Fed Chair’s speech.

Sensex ended the session at 81,306.85, down 693.86 points or 0.85 per cent. Ending upward momentum, the 30-share index opened the session in negative territory at 81,951.48 against last session's closing of 82,000.71. The index further extended the losing momentum to hint intra-day low at 81,291.77 amid overall selling.

Nifty closed at 24,870.10, down 213.65 points or 0.85 per cent.

"The Indian equity market closed in the red, 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," said Vinod Nair, Head of Research, Geojit Investments Limited

The US using trade tariffs on India as a strategic tool in its stance against Russia has raised near-term concerns among institutional investors, he added.

Asian Paints, Ultratech Cement, Tata Steel, ITC, HCL Tech, Kotak Bank, TCS, HDFC Bank, Tech Mahindra, SBI, Eternal and ICICI Bank were the top losers from the Sensex basket. While Mahindra and Mahindra, Maruti, and BEL were settled in the red.

The majority of sectoral indices felt the selling pressure during the session. Nifty Fin Services fell 256 points or 0.96 per cent, Nifty Bank slipped 606 points or 1.09 per cent, Nifty FMCG dipped 565.60 points or a per cent, and Nifty IT closed falling 283.05points or 0.79 per cent.

Meanwhile, broader indices remained range-bound. Nifty small cap 100 fell 46 points or 0.26 per cent, Nifty Midcap 100 settled 79 points or 0.14 per cent down, and Nifty 100 slipped 209 points or 0.82 per cent.

The rupee weakened by 0.25, settling at 87.50 after initially gaining on the GST reduction news, but the momentum faded as persistent FII selling pressure weighed on sentiment.

"Market focus now shifts to Powell’s speech at Jackson Hole, which is expected to guide the dollar index and thereby influence rupee direction. Crude price movements and global risk sentiment will also play a crucial role in determining near-term trends," said Jateen Trivedi of LKP Securities.

Technically, the rupee has immediate support near 87.75, while resistance is seen around 87.15, suggesting a volatile yet range-bound trade ahead, he added.

--IANS

aps/na