On September 4, the NIFTY50 index saw its 14-day winning streak come to an end due to profit booking in Public Sector Unit (PSU) banks and IT stocks. This halt followed a record rally, leaving investors looking for safer opportunities to invest in stocks that may provide stability during this shift in market momentum.
NIFTY50 and SENSEX experience declines
The NIFTY50 index dropped by 81.15 points, or 0.32%, to close at 25,198.7. During the day, it hit a low of 25,083.80 before recovering slightly and reaching a high of 25,216. The BSE SENSEX also experienced a dip, closing lower by 202.8 points, or 0.25%, at 82,352.64. The index fell to an intraday low of 81,833.69 but managed to bounce back later.
Global factors played a significant role in this decline, particularly a sharp 9.5% drop in Nvidia's shares in the U.S. market, which triggered a global sell-off. Investors now focus on where they can invest in stocks that offer stability amidst this volatility.
Sectoral performance: IT and PSU banks lead the decline
Among the sectoral indices, NIFTY PSU Bank saw the sharpest decline, falling by 1.63%. This was followed by NIFTY IT, which dropped nearly 1% due to losses in heavyweights like Infosys and TCS.
Other sectors, including NIFTY Metal, also struggled, declining by 0.65%. However, defensive sectors like NIFTY Pharma, Realty, and FMCG bucked the trend and managed to post gains of up to 1% as investors shifted their focus toward safer, more reliable stocks. This shift indicates a growing preference to invest in stocks that offer more defensive characteristics.
Strong performers: Asian Paints and Grasim lead rises
Despite the broader market declines, Asian Paints emerged as the top gainer on the NIFTY index, rising by 2.39% to close at ₹3,230.2 per share. This strong performance underscores Asian Paints’ reputation as a solid defensive stock, making it an attractive option for investors seeking stable returns during uncertain times.
Grasim followed closely, posting a gain of 1.93% to ₹2,759. Investors considering long-term opportunities may find Grasim to be a worthwhile option when looking to invest in stocks.
Hindustan Unilever (HUL), another key player in the FMCG sector, also performed well, climbing by 1.70% to ₹2,841.90. Apollo Hospitals and Sun Pharma followed with gains of 1.27% and 1.13%, respectively.
Market dip: Wipro and Coal India lead declines
On the losing side, Wipro faced the sharpest drop, falling by 3.17% to ₹519.05, as growth concerns in the U.S. market impacted investor sentiment. Coal India also saw a significant decline, falling 3.12% to ₹503.4 per share.
Other major losers included ONGC, down 2.53% to ₹314.05, and Hindalco, which fell by 1.83% to ₹666.5. Mahindra & Mahindra also struggled, declining by 1.36% after weaker-than-expected auto sales in August.
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