Sen**** Drops 650 Points, Nifty Near 25,250 Amid Profit Booking
Indian equity markets ended the session on a weak note as heavy profit booking dragged benchmark indices lower. The Sen**** slipped nearly 650 points, while the Nifty declined toward the 25,250 mark, reflecting cautious sentiment among investors after recent gains. The sell-off came despite mixed global cues, as traders chose to lock in profits at higher levels rather than take fresh positions.
Banking and financial stocks were among the biggest laggards, with heavyweight private banks witnessing sustained selling pressure. IT shares also traded lower as concerns over global demand and muted outlooks weighed on sentiment. FMCG and metal stocks showed selective weakness, while only a handful of defensive counters managed to provide limited support to the indices.
Market participants noted that valuations in several frontline stocks had become stretched following the recent rally, prompting short-term investors to book profits. The absence of strong domestic triggers and continued uncertainty around global interest rates further contributed to the cautious tone. Rising crude oil prices and persistent foreign institutional investor (FII) outflows added to the pressure on equities.
Mid-cap and small-cap stocks also faced selling, underperforming the broader market as risk appetite weakened. Analysts believe the current decline remains a healthy correction within an overall positive trend, provided key support levels hold in the coming sessions.
Looking ahead, investors are expected to closely track global market movements, crude oil trends, and upcoming economic data for fresh cues. Experts advise maintaining a stock-specific approach, focusing on fundamentally strong companies, while avoiding aggressive positions until markets show clearer direction.