- Indian equity markets ended lower for a third consecutive week, marking their longest losing streak in five months, as weakness in FMCG and PSU stocks weighed on the benchmarks.
- The Sensex, Nifty, and Nifty Bank each declined around 0.5% over the week.
- FMCG and PSU indices were among the biggest sectoral laggards, while IT emerged as the top-performing sector.
- On Friday, markets ended higher as IT stocks led a recovery, with Sensex rising 331 points to 77,265 and Nifty gaining 85 points to 24,176.
- Domestic equities ended the week marginally lower, extending their range-bound movement through August despite foreign investors buying more than ₹30,000 crore of equities during the month.
- The Sensex fell 0.36% during the week to close at 77,264.51, while the Nifty 50 declined 0.31% to settle at 24,175.65.
- Despite the decline, strong gains in technology stocks helped the indices snap a two-session losing streak.
- Fast-moving consumer goods and automobiles were among the top losers as rising input costs raised concerns of margin pressure in those sectors.
Indian equity markets have experienced their longest losing streak in five months, with the Sensex falling 0.36% to close at 77,264.51 and the Nifty 50 declining 0.31% to settle at 24,175.65.16
The decline was primarily driven by weakness in FMCG and PSU stocks, which were among the biggest sectoral laggards, while IT stocks emerged as the top performers, gaining more than 3% due to a global tech rally.
Despite foreign investors purchasing over ₹30,000 crore of equities in August, domestic equities remained under pressure, with analysts noting that rising input costs in sectors like fast-moving consumer goods and automobiles raised concerns over margin pressures.58
Mayank Jain, a market analyst at Share. Market by PhonePe, highlighted that the rally was driven by structural demand from sectors such as green energy and AI data centers, which require significant quantities of metals.
Looking ahead, analysts expect Indian equities to trade within a broad range amid mixed global cues and geopolitical tensions, with attention turning to India's June-quarter GDP data due on 31 August. A Mint poll of 21 economists projected India's GDP growth at 7.4% for Q1, a four-quarter low.
Brent crude prices have also cooled to around $88 per barrel, potentially providing some relief to domestic macro conditions, experts noted.
“Markets will watch private consumption and investment trends,” Jain said, adding that growth above 7.5% could trigger an upward breakout, while a sharp miss could raise concerns over domestic demand.
“Foreign investors bought more than ₹30,000 crore of equities in August, yet the Sensex slipped 0.36% to 77,264.51 and the Nifty 50 fell 0.31% to 24,175.65. Analysts expect range-bound trade, with June-quarter GDP data due on 31 August likely to guide direction.”
CNBC TV18
