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Indian Markets Slide Fifth Day as Sectors Face Selling Pressure

By Mandar in Indian Market Insights —

Indian Equity Markets: September 25th Downturn

On September 25th, Indian equity markets witnessed a continued decline, marking the fifth consecutive day of losses. The Nifty fell below 24,900, and the Sensex dropped by 556 points, closing at 81,160. This downturn was influenced by several factors:

  • Broad-based Selling: Significant selling pressure was observed across various sectors.
  • Sectoral Performance: Consumer durables, automobile, power, IT, and real estate sectors experienced losses around 1%.
  • Metals Sector: The metals sector showed resilience, increasing slightly by 0.22%, supported by China's liquidity measures and copper supply concerns.

Key Stock Performance:

  • Laggards: Tata Motors, Trent, Shriram Finance, TCS, and Power Grid were major contributors to the Nifty's decline.
  • Gainers: Bharat Electronics, Hindalco, Axis Bank, ONGC, and Hero MotoCorp saw gains.

Factors Contributing to Market Sentiment

Several factors contributed to the cautious investor behavior:

  • FII Outflows: Persistent selling by Foreign Institutional Investors (FIIs). Equities worth Rs 2,425 crore were sold on Wednesday alone.
  • US Visa Fees: Apprehensions about increased US visa fees.
  • US-India Trade Talks: Uncertainty surrounding US-India trade discussions.

Analyst Perspectives and Future Outlook

Despite the current market weakness, analysts offer a positive outlook based on:

  • Economic Reforms: Ongoing economic reforms in India.
  • Low Interest Rate Environment: The prevailing low-interest rate environment.

Projections:

  • Jefferies: Projects nearly a 7% upside for the Nifty by the end of 2025.
  • HSBC: Upgrades Indian equities to 'overweight,' forecasting the Sensex to reach 94,000 by the end of 2026.

Overall Perspective:

The market is currently facing short-term challenges due to global macroeconomic uncertainties and domestic policy events. However, structural factors and positive earnings prospects are expected to sustain investor interest in the medium term.