Sensex and Nifty Witness Minor Decline; Nifty Media Outperforms, Realty Struggles

Indian markets closed slightly lower on September 5, as global equities remained steady amid uncertainty regarding the US economy and potential Federal Reserve rate cuts.

The Sensex dropped by 0.18% to 82,201 at the close, while the Nifty ended 0.21% lower at 25,145.

Market Overview

Indian benchmark indices experienced a minor dip, largely influenced by global trends and key economic data from the US. This decline follows a week of cautious trading as investors awaited new cues from global markets.

Sectoral Performance

• Top Gainers:
  • Nifty Media: Rose 0.8%
  • Nifty Consumer Durables: Up by 0.66%
  • Nifty IT: Increased by 0.5%
  • Nifty Metal & Nifty PSU Bank: Each gained 0.3%
• Top Losers:
  • Nifty Realty: Fell 1%
  • Nifty Auto & Oil & Gas: Dropped by 0.4% each

Global Market Impact

US futures edged higher, but Asian stocks erased most of their gains, driven by losses in Japan. Investors are now focusing on upcoming US economic data, including weekly jobless claims and nonfarm payrolls, to assess the possibility of a soft landing as the Federal Reserve contemplates easing its policies. The global markets earlier experienced their worst decline since the August 5 meltdown, with the Cboe Volatility Index remaining elevated at 20.

Expert Insights

Prashanth Tapse, Senior VP (Research), Mehta Equities
“Markets ended weak in a volatile trading session, driven by profit-taking in Reliance Industries. Globally, most equity indices were sluggish to mixed, awaiting key US data on Friday, which could hint at the Federal Reserve’s upcoming stance on interest rates.”

Vinod Nair, Head of Research, Geojit Financial Services
“Concerns over the US and Chinese economic slowdown kept benchmark indices under pressure. The broader market, however, outperformed, benefiting from positive domestic service PMI data that indicates supportive local economic conditions.”

Shrikant Chouhan, Head of Equity Research, Kotak Securities
“Intraday profit booking at higher levels led to minor losses in Nifty and Sensex. The market consistently faced selling pressure, forming a bearish candle on daily charts. The current market texture is non-directional, so level-based trading would be ideal for day traders.”

Technical View: Nifty Consolidation Expected, Buy on Dips

The Nifty 50 extended its losses for the second consecutive session on September 5, falling below 25,150. Despite opening positively, Nifty erased its gains as the day progressed and ended 53.60 points down at 25,145.

• Top Gainers: Titan Company, LTIMindtree, Wipro, BPCL, ITC
• Top Losers: Coal India, Britannia Industries, Cipla, Dr. Reddy’s Labs, Reliance Industries

Sector-wise, buying was seen in bank, metal, IT, and media, while selling pressure hit auto, energy, and realty stocks.

The broader indices outperformed, with the Nifty midcap 100 index rising 0.4% and the Nifty smallcap 100 index adding 1%.

Expert Analysis

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas
“Nifty’s uptrend remains intact, but a consolidation between 25,000 and 25,350 is likely over the next few sessions. Dips toward the 25,100–25,050 zone should be seen as buying opportunities, with immediate resistance at 25,300–25,350.”

Bank Nifty Performance

The Bank Nifty opened higher and touched a high of 51,636.75 during the day. However, higher-level profit booking erased some of its intraday gains, closing marginally higher at 51,473.05.

Gedia’s View
“The Bank Nifty outperformed today, closing in the green. We expect the Bank Nifty to take the lead in upcoming sessions, with short-term targets of 51,900–52,000. Support is seen at 51,100–51,000.”