Markets snap 7-day gaining streak; Nifty drops 182 points, Sensex down 729

Benchmark indices ended their seven-day winning streak on Wednesday, driven by profit-taking and uncertainty surrounding next week’s anticipated US tariff announcements. The Nifty 50 declined 0.77 per cent, or 182 points, closing at 23,487, while the Sensex dropped 729 points, or 0.93 per cent, to settle at 77,288. Following the fall, year-to-date returns for both indices slipped into negative territory.

 

The broader market extended losses for a second day, with the Nifty Midcap 100 and Nifty Smallcap 100 indices falling 0.6 per cent and 1.1 per cent, respectively. This retreat follows a six-day rally during which both indices had surged nearly 10 per cent each. The Sensex and Nifty had gained 5.7 per cent over the prior seven sessions, fueled by renewed foreign inflows and value buying.

 

 

Optimism that the incoming US administration might adopt a lenient stance on tariffs, potentially sparing certain countries and sectors, had also lifted investor sentiment. However, Wednesday’s downturn reflected a shift in mood.

 

Among Sensex constituents, NTPC and Zomato saw the steepest declines, each dropping over 3 per cent. Zomato and Swiggy shares faced pressure after Bank of America (BofA) downgraded the stocks, citing concerns over mounting losses in their quick commerce ventures.

 

Market breadth remained weak, with only 919 stocks advancing compared to 3,115 declining on the BSE.

 

“Markets buckled under selling pressure after the recent buoyancy as investors trimmed their exposure ahead of the concerns over the likely imposition of import tariffs by the Trump administration starting next month. Investors would want to play safe and reduce their equity exposure as there is still no clarity over the start of a reciprocal tariff regime,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

 

The market experienced profit booking after the recent gains ahead of the next week's US tariff announcements, said Vinod Nair, Head of Research, Geojit Investments. "The sectors with higher exposure to the US market, like pharma & IT, have witnessed some selling pressure. Oil prices inched higher, driven by US sanctions on Iran and anticipation of a drop in US crude inventories," he added.

 

Except for Nifty Auto, all sectoral indices ended the session in the red. Nifty IT was down nearly 1 per cent, while Nifty Bank closed 0.8 per cent lower. Nifty Media, Nifty PSU Bank, Nifty Realty, Nifty Healthcare, and Nifty Oil & Gas were down over 1 per cent.

 

According to analysts, while the Nifty 50 is down over 400 points from its recent high, it remains above key moving averages. "Immediate support is placed near 23,400, coinciding with 100 and 200-day exponential moving averages," said Devarsh Vakil - Head of Prime Research, HDFC Securities.