Investors turn chary of mkt direction

Mumbai: Equity benchmark indices Sensex and Nifty fell sharply by nearly 1 per cent on Friday, snapping their six-day winning streak, as investors turned cautious ahead of US Fed Chair Jerome Powell’s Jackson Hole address amid growing global trade uncertainties triggered by Trump tariffs. Intense selling in market heavyweights HDFC Bank and Reliance Industries also dampened risk appetite, traders said.

The 30-share BSE Sensex tumbled 693.86 points or 0.85 per cent to settle at 81,306.85. During the day, it plunged 708.94 points or 0.86 per cent to 81,291.77. As many as 2,316 stocks declined while 1,765 advanced and 159 remained unchanged on the BSE. The 50-share NSE Nifty dropped 213.65 points or 0.85 per cent to 24,870.10. On the weekly front, the BSE benchmark jumped 709.19 points or 0.87 per cent, and the Nifty climbed 238.8 points or 0.96 per cent.

“Markets snapped a six-session winning streak and ended lower, losing nearly a per cent as sentiment turned weak from the outset and deteriorated further in the latter half. The weakness was primarily driven by caution ahead of US Fed Chair Jerome Powell’s Jackson Hole address and renewed concerns around global trade and geopolitical tensions, which dampened risk appetite. Domestic profit-booking after the recent rally and a pause in fresh FPI inflows further weighed on sentiment,” said Ajit Mishra, Sr V-P (research), Religare Broking Ltd. The BSE smallcap gauge declined 0.35 per cent, and the midcap index dipped 0.23 per cent. “Market sentiment turned cautious as profit-booking set in after a strong six-day rally driven by GST reform optimism and an S&P rating upgrade. Investors also awaited Powell’s comments, which could influence September’s Fed policy direction. Adding to the pressure were concerns over the August 27 deadline for additional US tariffs on Indian goods,” Gaurav Garg, Analyst, Lemonn Markets Desk, said.