Indian stock indices ended the week with slight losses after reaching new peaks, likely due to profit booking by investors. The Sensex, which briefly neared the 86,000 mark, closed at 85,571.85, down by 264.27 points or 0.31 per cent. Similarly, the Nifty finished the day at 26,175.15, down 40.90 points or 0.16 per cent.
According to NSE data, sectors including banking, financial services, media, and real estate were among the biggest laggards.
“After a recent strong rally, the benchmark indices moved sideways today as investors opted for profit booking at these higher levels,” said Vinod Nair, Head of Research at Geojit Financial Services.
The recent loosening of US monetary policy, with a 50-basis-point cut in interest rates, has been a supportive factor for Indian stocks. Lower interest rates in the US often result in capital flows to markets with higher policy rates, like India.
Foreign portfolio investors (FPIs) have also continued their buying spree, attracted by the interest rate differentials. So far in September, FPIs have bought Rs 488.22 crore worth of Indian stocks, marking the fourth consecutive month of net buying.
“Sectors such as Public Sector Banks, Defence, and Railways, which saw strong participation earlier, are now being overshadowed by underperformers like Pharma, Private Banks, and mid-sized IT firms. These sectors, with their appealing valuations, are expected to drive the market’s next phase in the coming quarters,” said Krishna Appala, Senior Research Analyst at Capitalmind Research. (ANI)