After three straight days of gains, India’s benchmark indices closed lower on Thursday amid profit-taking and sector-specific pressures. Sensex tumbled 503.76 points (0.60%) to 83,313.93, and Nifty slipped 133.20 points (0.52%) to 25,642.80.
The defense sector bore the brunt, as HAL plunged 4.31%, Data Patterns lost 3.63%, and Cyient DLM shed 3.34%. This dragged down key indices: Nifty Defence dropped 2.10%, Metals 1.02%, Consumer Durables 0.82%, Manufacturing and Consumption 0.59% each.
Select pockets bucked the trend, with PSU Banks up 0.38% and Healthcare advancing 0.14%. Midcaps and smallcaps followed suit, Nifty Midcap 100 down 0.28% at 59,517.10, Smallcap 100 weaker by 1.20% at 16,983.90.
BSE’s overall breadth was negative: 1,737 gainers against 2,447 losers, with 158 flat. The Indian rupee firmed up 0.22% to 90.30 per dollar, buoyed by a softer greenback, easing commodities, and positive vibes from the US-India trade agreement.
Research analyst Jatin Trivedi from LKP Securities highlighted that dollar weakness and trade deal optimism fueled rupee gains. He cautioned that future movements depend on RBI’s policy reveal tomorrow. This correction offers a breather after recent euphoria, but eyes are on inflation data and Fed signals for sustained direction.
Despite the dip, year-to-date gains remain robust, supported by solid GDP growth projections and corporate profitability. Traders advise vigilance on geopolitical risks and oil prices.