Sensex settles 300 pts lower from day's high, Nifty ends near 25,800: Weak global cues among key factors behind market decline

Stock market today: Sensex, Nifty see profit booking. 

The equity benchmark indices Sensex and Nifty declined for the fourth straight day on Thursday amid weak global cues and selling pressure in select sectors.

The Sensex fell 300 points from the day's high to 84,481.81, while the broader Nifty declined to 25,815.55.

Key factors behind the decline

1) Weak global cues: Asian markets traded mostly lower, tracking overnight losses on Wall Street. South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng were in the red, while Shanghai’s SSE Composite index traded with marginal gains. US markets ended lower on Wednesday amid profit booking in technology and artificial intelligence-related stocks.

2) Selling in auto shares: Auto stocks witnessed selling pressure, declining up to 2 percent, as investors booked profits, thus weighing on overall market sentiment.

3) Crude oil prices rise: Brent crude, the global oil benchmark, climbed 0.65 percent to $60.07 per barrel. Higher crude prices tend to raise concerns over inflation and increase input costs for oil-importing countries like India, impacting market sentiment.

Technical view

Anand James, Chief Market Strategist at Geojit Investments Limited, said the Nifty has declined over a percentage point from the week’s peak and has slid back to last Friday’s lows.

“This offers scope for a potential rebound towards 25,980 initially. However, failure to hold above 25,850 could expose the index to levels of 25,650-25,300 or even 25,130, and may also confirm a near-term downtrend,” he said.

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