The equity benchmark indices, Sensex and Nifty, experienced a downturn due to significant selling pressure on July 27. Investors reduced their exposure to bellwether stocks such as HDFC Bank, M&M, Nestle, and Reliance Industries amid mixed trends in global markets.
Despite the U.S. Fed's interest rate hike attempt to boost sentiment in the domestic market, there was a steep decline primarily led by banking and auto stocks, according to traders.
The BSE Sensex initially opened with gains of over 125 points but later plunged by 440.38 points or 0.66% to settle at 66,266.82, while the Nifty declined by 118.40 points or 0.60% to close at 19,659.90.
Among the Sensex components, Mahindra and Mahindra suffered the most significant loss, falling by 6.39%. It was followed by Tech Mahindra, Nestle India, Bajaj Finance, Axis Bank, ITC, JSW Steel, HDFC Bank, and RIL.
On a positive note, Sun Pharma, Tata Motors, Bharti Airtel, L&T, and Infosys were among the winners, rising by up to 2.10%.
Despite the positive cues triggered by the U.S. Federal Reserve's interest rate move in global markets, the domestic market sentiment underwent a sharp correction, especially in banking and auto stocks.
The Mahindra group firms' shares declined amidst reports suggesting M&M's potential purchase of around a 10% stake in RBL Bank.
Tech Mahindra reported a 38% fall in net profit for the June quarter, with profits amounting to Rs. 692.5 crore.
As for the 50-stock index Nifty, 21 stocks closed the session in green while 29 ended in the red.
In Asian markets, Hang Seng rose by 1.41%, and Japan's Nikkei was 0.68% higher. However, Chinese indices Shenzhen and Shanghai slipped by 0.41% and 0.2%, respectively.
European markets performed well, with France's CAC 40 rising by 1.35%, Germany's DAX gaining 0.89%, and the UK's FTSE 100 up by 0.30%.
In the U.S. market on July 26, the S&P 500 closed 0.02% lower, while the Dow Jones settled 0.23% higher.
Meanwhile, the global oil benchmark Brent crude traded at $83.71 per barrel, showing a 0.95% increase.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on July 26, as they purchased shares worth Rs. 922.84 crore, as per exchange data.
Breaking its three-session losing streak on July 26, the 30-share BSE Sensex climbed 351.49 points or 0.53% to settle at 66,707.20. Simultaneously, the broader NSE Nifty advanced by 97.70 points or 0.50% to end at 19,778.30.
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