Nifty, Sensex Fall For Fourth Day, Close At Three-Week Low: Market Wrap

The benchmark equity indices ended lower for the fourth consecutive day on Thursday and recorded the lowest closing since Nov. 28, tracking global negative sentiment following hawkish commentary by the US Federal Reserve.

The NSE Nifty 50 closed 247.15 points or 1.02% down at 23,951.70 and the BSE Sensex ended 964.15 points or 1.2% lower at 79,218.05. During the day, both of them had declined 1.4% each.

The sentiment was dampened as the Federal Open Market Committee, which cut the benchmark interest rate by 25 basis points on Wednesday, indicated just two quarter-point cuts next year and upward revision of US inflation projection for the end of 2025.

Investors will now be looking at the US gross domestic product and unemployment claims, to be released later in the day. UK's monetary policy summary will also be watched.

"Around its 200 DMA support, the index has formed a probable double bottom formation (not yet confirmed)," said Aditya Gaggar, director of Progressive Share Brokers Pvt. "A strong move above 24,200 is necessary to validate the reversal, whereas a break below 23,900 will drag the Index further lower to 23,760."

Share prices of ICICI Bank Ltd., Reliance Industries Ltd., HDFC Bank Ltd., Infosys Ltd. and Tata Consultancy Services Ltd. dragged the Nifty the most.

Dr Reddy's Laboratories Ltd., Sun Pharmaceutical Industries Ltd., Cipla Ltd., Bharat Petroleum Corp. and Apollo Hospitals Enterprise Ltd. capped the fall.

Except Nifty Pharma, which rose nearly 2%, all sectoral indices on the National Stock Exchange declined, with the Nifty IT and Finance falling the most.

The broader markets outperformed the benchmark indices as the BSE MidCap and SmallCap ended 0.30% and 0.28% down respectively.

Twenty out of the 21 sectors on the BSE declined, with the BSE Focused IT declining the most. Only Healthcare advanced.

The market breadth was skewed in favour of the sellers as 2,299 stocks declined, 1,693 advanced and 103 remained unchanged on the BSE.