Synopsis
On March 26, the Indian stock markets experienced a downturn after a seven-day winning streak, as investors engaged in profit booking. The Sensex fell by 728.69 points, while the Nifty declined by 181 points. Despite the losses, analysts remain optimistic about the long-term market outlook.Key Takeaways
- Indian stock markets ended lower after a winning streak.
- Sensex fell by 728.69 points.
- Nifty dropped 181 points.
- Profit booking was the primary reason for the decline.
- Long-term outlook remains positive.
Mumbai, March 26 (NationPress) Following a remarkable seven-day streak of gains, the Indian stock markets closed lower on Wednesday as investors opted to book profits across various sectors.
The Sensex experienced a decline of 728.69 points, equating to a decrease of 0.93 percent, finishing at 77,288.50. Throughout the trading session, the index saw fluctuations, reaching a high of 78,167.87 and dipping to a low of 77,194.22.
Similarly, the Nifty index also fell, ending 181 points lower at 23,486.85, marking a 0.77 percent drop. The index peaked at an intra-day high of 23,736.50 before retreating to a low of 23,451.70.
“In the shorter time frame, the Nifty index has moved below its near-term moving average,” stated Rupak De of LKP Securities. He indicated that support is positioned at 23,300, suggesting that the current decline could extend to that level.
“Nonetheless, a drop below 23,300 could cast doubt on the recent substantial rally from 21,964. A resistance level exists at 23,550, and surpassing that could boost market sentiment,” De noted.
All but four stocks in the BSE Sensex concluded in the negative, with the exceptions being IndusInd Bank, Power Grid Corp, Titan Company, and Mahindra & Mahindra. The losses for the remaining 26 stocks reached as high as 3.45 percent.
Mid-cap and small-cap stocks were also under pressure, with the Nifty Midcap100 index closing down 0.62 percent and the Nifty Smallcap100 index falling by 1.07 percent.
In terms of sectoral performance, all indices except for the Nifty Auto ended in the red, indicating a widespread sell-off. Among the declining sectors, the Nifty PSU Bank, IT, Financial Services, Healthcare, Realty, and Oil & Gas all dropped by more than 1 percent.
However, the Nifty Auto sector managed a slight uptick of just 0.02 percent. The overall decline was largely attributed to profit booking following the recent market upswing, as investors decided to realize their earnings.
Despite this downturn, analysts maintain a positive long-term outlook for the market, bolstered by robust economic fundamentals and growth in corporate earnings.
In the meantime, both the Nifty and Sensex have seen gains of 5.7 percent over the past week, turning positive for the year, fueled by foreign capital inflows and increasing optimism regarding improving domestic macroeconomic conditions.
