The Indian stock markets witnessed subdued trading on September 6, 2024, with both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) ending on a lackluster note. The Sensex dropped by 120 points, closing at 67,315, while the Nifty dipped by 38 points, settling at 19,996. This muted performance was primarily driven by weak global cues, fears of global economic slowdown, and mixed domestic signals from IT and banking sectors. Despite sectoral volatility, defensive sectors such as FMCG and pharmaceuticals limited further downside.
IT stocks led the decline with Infosys, TCS, and HCL Tech underperforming, reflecting a broader market caution on global technology demand. Banking stocks also struggled, with major players like ICICI Bank and HDFC Bank falling under profit-taking pressure. On the flip side, pharmaceuticals and FMCG stocks witnessed gains, as investors sought safety in these defensive sectors.
Analysts suggest that concerns about rising inflation globally and the potential for further rate hikes have kept investor sentiment cautious. In addition, volatile commodity prices and concerns around the upcoming corporate earnings season contributed to the lack of direction in the market. FII (Foreign Institutional Investor) selling further weighed on the sentiment.
Market experts believe that unless a strong breakout happens above key resistance levels of 22,150 in the Nifty and 47,000 in the Bank Nifty, the market is likely to remain range-bound. Investors are advised to adopt a stock-specific approach, focusing on defensive sectors while waiting for clearer global and domestic triggers to drive market movement.
