Markets fell sharply on Thursday, ending a three-day winning streak as investors booked profits and turned cautious. The BSE Sensex slipped more than 400 points in early trade, while the NSE Nifty 50 dropped below the key 25,650 level, reflecting broad selling pressure across sectors.
The decline was led by metal and banking stocks, which remained under pressure throughout the session. Weak global cues and uncertainty over commodity prices weighed on metal shares, while select financial stocks also saw selling. Pharma stocks traded lower as well, adding to the overall weakness in the market.
Among the major losers on the Sensex were IndiGo, Axis Bank, Tata Steel, Bharat Electronics (BEL) and Larsen & Toubro, with losses ranging between 1 and 2 per cent. These stocks pulled the benchmarks down as investor sentiment remained cautious.
On the other hand, a few stocks managed to stay in positive territory despite the broader fall. Hindustan Unilever (HUL), Trent, NTPC, Infosys and TCS were among the top gainers, rising up to 2 per cent. Gains in these stocks provided limited support to the indices but were not enough to offset losses elsewhere.
The broader market also mirrored the negative trend. Mid-cap and small-cap stocks slipped, showing that selling was widespread and not limited to large-cap stocks alone. Several stocks also reacted to quarterly earnings announcements, leading to stock-specific volatility.
Global markets offered mixed signals. Asian markets were mostly lower, while US market cues were uncertain. Volatility in commodity prices, especially a sharp fall in silver and easing gold prices, also affected investor sentiment.
Market experts said the fall was largely due to profit booking after the recent rally. They added that while the long-term outlook for Indian markets remains positive, short-term volatility may continue as investors track global developments and corporate earnings.
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