Why Did Sensex and Nifty End Their 6-Day Winning Streak?
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Synopsis
On October 24, the Indian stock markets faced a downturn after a six-day winning streak ended. Investor sentiment was shaken by potential US-China trade tensions, prompting cautious trading behavior. Discover what factors influenced this market shift and what analysts expect in the coming sessions.
Key Takeaways
- Sensex fell 344.52 points, closing at 84,211.88.
- Nifty decreased by 96.25 points, ending at 25,795.15.
- Market volatility expected in the upcoming sessions.
- Sector performances varied, with Nifty Metal leading gains.
- Concerns over US-China trade tensions impact investor sentiment.
Mumbai, Oct 24 (NationPress) The Indian stock markets closed lower on Friday, ending a six-day winning streak. This downturn was influenced by a dip in investor sentiment amid reports suggesting that the United States might initiate a new investigation into China's 2020 trade agreement.
At the end of trading, the Sensex dropped 344.52 points, or 0.41 percent, closing at 84,211.88, while the Nifty fell 96.25 points, or 0.37 percent, finishing at 25,795.15.
Market analysts noted, "The Nifty remained under pressure throughout the session as traders opted to book profits. It fell below the critical support level of 25,850, leading to a slide towards 25,700."
They added, "The next one to two sessions could be volatile; however, a sustained upward trend seems plausible afterwards. Resistance is identified at 25,850, and if surpassed, a rally towards 26,000 to 26,200 may occur."
Prominent laggards on the Sensex included Hindustan Unilever (HUL), UltraTech Cement, and Titan, which contributed to the downward movement of the indices.
Conversely, ICICI Bank, Bharti Airtel, Bharat Electronics Limited (BEL), and Sun Pharma provided some support, emerging as the day's top gainers.
In terms of sectors, the Nifty Metal index led the increase, climbing 1.03 percent, followed by the Nifty Oil and Gas index, which rose 0.2 percent.
However, FMCG stocks faced pressure, with the Nifty FMCG index declining 0.75 percent, making it the largest sectoral loser, closely followed by PSU Bank, down 0.74 percent.
In the broader market, both midcap and smallcap stocks experienced slight profit booking. The Nifty Midcap 100 finished 0.24 percent lower, while the Nifty Smallcap 100 index decreased by 0.21 percent.
Analysts commented that concerns regarding renewed US-China trade disputes and rising oil prices due to US sanctions on Russia have negatively impacted market sentiment, leading investors to adopt a cautious approach as the weekend approaches.
Point of View
I believe it's essential to recognize the influence of global economic relations on our markets. While short-term fluctuations are expected, the long-term outlook remains positive if we navigate these challenges thoughtfully. The NationPress will continue to provide insightful analysis to keep our readers informed during such volatile times.
NationPress
24/10/2025
Frequently Asked Questions
What caused the drop in the Indian stock markets?
The decline was primarily due to weakening investor sentiment related to potential trade investigations by the US into China, creating uncertainty in the market.
Which stocks were the biggest losers on the Sensex?
The major laggards included Hindustan Unilever (HUL), UltraTech Cement, and Titan, which negatively impacted the indices.
What are analysts predicting for the next trading sessions?
Analysts expect potential volatility in the next one to two sessions, but a sustained rally may be possible thereafter if certain resistance levels are surpassed.
How did sector performances vary today?
The Nifty Metal index saw the most gains, while FMCG stocks were the biggest losers, indicating varied sector performance amidst market fluctuations.
What impact did global events have on the market?
Concerns over renewed US-China trade tensions and rising oil prices due to US sanctions on Russia contributed to a cautious market atmosphere.
