Sensex, Nifty fall amid inflation concerns; FMCG stocks decline
The S&P BSE Sensex was down over 176.28 points to 65,511.90 at 9:28 am, while the NSE Nifty 50 fell 56.65 points to 19,486.45.
In Short
- Benchmark indices drop on inflation concerns, FMCG stocks decline
- Nifty IT gains, while other sectors show weakness in trading
- Nifty index's key level at 19,650 for bullish trend confirmation
Benchmark stock market indices fell on Friday as investors remained concerned about surging inflation in the country, leading to a decline in FMCG stocks.
The S&P BSE Sensex was down over 176.28 points to 65,511.90 at 9:28 am, while the NSE Nifty 50 fell 56.65 points to 19,486.45. Broader market indices also displayed signs of weakness, in line with the benchmarks.
Most of the major sectoral indices fell in early trade, with Nifty Metal losing the most, followed by Nifty Pharma and Nifty FMCG. Nifty Bank and Nifty Financial Services also suffered losses.
Nifty IT was the only exception among major sectoral indices, gaining 0.68 per cent as data showed that US inflation moderated.
The top gainers on the Nifty 50 were HCL Tech, Power Grid, LTIM, Tech Mahindra and Apollo Hospitals. On the other hand, HUL, JSW Steel, Sun Pharma, Hindalco and SBI Life were the top losers.
Om Mehra, research analyst at Choice Broking, said, “An intriguing development has occurred in the Nifty index as depicted on its daily charts. The recent price action has given rise to an 'inside body candle' pattern, indicating a potential scenario of limited price movement in the immediate future.”
“The confines of this pattern suggest that the market might continue to trade within a relatively narrow range. For a new bullish trend to emerge, a crucial level of 19,650 needs to be surpassed convincingly. Conversely, it's prudent to note that a decline in prices might be imminent if the index slips below the 19,500 mark,” he added.
“As part of the August Global Standard Index review, MSCI released its list of stocks on August 11. Additionally, PSU and defense could lead to stock-specific action today.”
