Sensex and Nifty Fall After Six Days of Straight Gains, IT and Bank Shares Drag

Market indices Sensex and Nifty started the day at a muted note. Right from the start of today’s market session, both the indices traded lower. At around 11:00 AM, Sensex was down 0.71%, or 582.61 points and was trading at 81,418.10. On the other hand, Nifty 50 was also down by 0.69%, or 173.35 points and was trading at 24,910.

Today’s fall in both indices comes after six days of straight gains. In the last six days, Sensex gained 1,765 points (2.14%), while Nifty gained 596 points (2.4%). They ended yesterday at record highs of 82,000.71 and 25,083.75, respectively.

IT and bank shares were the top contributors to the fall of both indices. Among the constituents of Sensex, HCL Tech, Asian Paints, Tech Mahindra, ICICI Bank, HDFC Bank, ITC, TCS, and NTPC were the biggest laggards. Meanwhile, shares such as Bharat Electronics, Mahindra & Mahindra, Bajaj Finance and Larsen & Toubro saw modest gains and helped support the index in not falling significantly.

Among the Nifty constituents, BEL, Sun Pharma, IndusInd Bank, Jio Finance were top gainers, while shares such as UltraTech Cement, Hero MotoCorp, Bajaj Auto and Grasim Industries were top losers.

Global factors are also weighing in to affect the performance of both indices. Investors are cautious of US Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium, along with concerns regarding Trump’s tariffs. Furthermore, major US indices also traded lower yesterday.

However, both indices are being supported by the purchase from FIIs and DIIs. On August 21, Foreign Institutional Investors (FIIs) were net buyers and bought ₹1,246.51 crore worth of Indian equities. On the other hand, Domestic Institutional Investors (DIIs) bought Indian equities worth ₹2,546.27 crore.

It remains to be seen how the indices perform throughout the day, which will form the basis for their performance on Monday.

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