 "Sensex, Nifty end lower after six-day rally; profit booking hits gains")
Benchmark indices ended lower on Friday as investors booked profits after a six-session rally, even as easing US-China trade tensions lifted sentiment across major Asian markets.
The Sensex closed at 84,212, down 345 points or 0.4 per cent, while the Nifty ended at 25,795, slipping 96 points or 0.4 per cent. Both indices had opened positive. For the week, the Sensex rose 0.3 per cent and the Nifty 0.33 per cent — marking their fourth straight weekly gain and the longest winning streak since December 2024.
The latest decline follows a 3 per cent advance over the past six sessions and raises fresh doubts on whether the 50-share Nifty can sustain above 26,000 — a key resistance zone.
Despite the mild pullback, both indices remain on track for their best monthly performance since March. So far this month, they have gained 5 per cent and are less than 2 per cent below their record highs from September 2024.
Markets have been buoyed by expectations of a potential trade pact with the US, robust July-September corporate earnings and improvement in foreign flows.
Investor sentiment in emerging Asian equities improved after the White House confirmed that US President Donald Trump and Chinese President Xi Jinping would meet next Thursday on the sidelines of the APEC summit — their first in-person encounter since Trump’s return to office in January, following weeks of escalating trade frictions.
Sectorally, FMCG stocks led the declines, with the Nifty FMCG index slipping 0.8 per cent after Hindustan Unilever fell 3.3 per cent and Colgate-Palmolive India dropped 2.2 per cent on weaker September-quarter earnings.
In contrast, metal stocks gained 1 per cent, tracking global commodity price strength and optimism over the Trump-Xi meeting. The Nifty Metal index was among the top performers as investors bet on supply tightening in key industrial metals.
"The Samvat 2082 week began on a festive and optimistic note but gradually lost momentum as investors turned to profit-taking," said Vinod Nair, head of research at Geojit Investments. "Crude oil prices surged following fresh US and EU sanctions on Russian oil majors, rekindling inflation fears. Elevated crude may strain India’s import bill and widen the fiscal deficit."
Market breadth remained negative, with 2,416 stocks declining and 1,771 advancing. Top weight HDFC Bank, down 1.4 per cent, was the largest drag on the Sensex, followed by Hindustan Unilever.
Foreign portfolio investors (FPIs) were net buyers of shares worth ₹621 crore, and domestic institutional investors bought equities worth ₹173 crore.
"The 25,950-26,000 zone will act as an immediate resistance for the Nifty. A sustained move above 26,000 could extend the rally towards 26,300, while support lies at 25,550-25,500," said Sudeep Shah, head of technical and derivatives research at SBI Securities.