What Caused the Stock Market to End Its Three-Day Rally?
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Synopsis
The Indian stock market faced a downturn after a three-day rally, primarily impacted by profit booking in major sectors. Despite the overall decline, shares of the Adani Group saw significant gains following a favorable report from SEBI. Discover the factors influencing the market's current dynamics and the shifts in key indices.
Key Takeaways
- Profit booking in IT and banking sectors led to market decline.
- Adani Group shares surged after favorable SEBI report.
- Sensex dropped to 82,626.23.
- Nifty closed at 25,327.05.
- Broader market showed resilience with small-cap gains.
Mumbai, Sep 19 (NationPress) The Indian equity markets concluded their three-day upward trend by ending the session on a downturn this Friday.
Profit-taking in major IT and banking stocks weighed down the market. Nonetheless, a surge in Adani Group shares following the SEBI's favorable report regarding allegations from US short-seller Hindenburg helped to mitigate the extent of the decline.
The Sensex finished at 82,626.23, dropping by 387.73 points or 0.47 percent. The index began the day slightly lower at 82,946.04 from the previous session's close of 83,013.96, and further declined amidst selling pressures in the IT and banking sectors, hitting an intraday low of 82,485.92.
The Nifty index closed at 25,327.05, down by 96.55 points or 0.38 percent.
Adani Total Gas Limited's stock increased by 7.55 percent, closing at Rs 652.80. Adani Power shares surged by 13.42 percent, while Adani Enterprises rose by 5.25 percent to Rs 2,528, and Adani Ports and Special Economic Zone Limited saw a 1.15 percent increase to Rs 1,429.
Top losers among the Sensex constituents included HCL Tech, ICICI Bank, Trent, Titan, Mahindra and Mahindra, HDFC Bank, Kotak Bank, PowerGrid, Ultratech Cement, Hindustan Unilever, Tata Motors, and ITC. In contrast, Adani Ports, SBI, NTPC, Bharti Airtel, Asian Paints, Axis Bank, and Maruti Suzuki finished in the green.
Most sectoral indices concluded the session in the red due to a lack of investor enthusiasm. Nifty Fin Services dropped by 171 points or 0.64 percent, Nifty Bank fell by 268.60 points or 0.48 percent, Nifty Auto declined by 109 points or 0.40 percent, Nifty FMCG dipped by 249 points or 0.44 percent, and Nifty IT ended down 172 points or 0.47 percent.
Meanwhile, the broader market showed relative resilience with a slight uptick in small-cap stocks. The Nifty Small Cap 100 rose by 27.60 or 0.15 percent, while the Nifty Midcap 100 increased by 21 points, although Nifty 100 fell by 56 points or 0.21 percent.
The Indian rupee closed slightly higher at 88.10 per dollar on Friday, compared to the previous day's closing of 88.13.
Point of View
It is important to highlight that the recent fluctuations in the Indian equity markets reflect broader economic trends. While profit booking in IT and banking stocks has caused a downturn, the resilience shown by the Adani Group amidst regulatory clarifications signals potential recovery paths for investors. Our focus remains on delivering factual and unbiased reporting to keep our audience informed.
NationPress
20/09/2025
Frequently Asked Questions
What triggered the decline in the Indian stock market?
The decline was primarily triggered by profit booking in major IT and banking stocks.
Which stocks saw significant gains despite the market downturn?
Shares of the Adani Group, including Adani Total Gas and Adani Power, saw significant gains.
How did the Sensex perform during this session?
The Sensex ended at 82,626.23, down by 387.73 points or 0.47 percent.
What was the closing value of the Nifty index?
The Nifty index settled at 25,327.05, down by 96.55 points or 0.38 percent.
How did the broader market perform?
The broader market remained relatively firm, with small-cap stocks showing some uptick.
