Markets take a breather after record rally; settle marginally lower in volatile trade

Equity benchmark indices Sensex and Nifty took a breather on Friday after a record rally in the previous session and ended marginally lower on the emergence of profit-taking.

In a volatile trade, the 30-share BSE Sensex fell by 71.77 points or 0.09 percent to close at 82,890.94. During the day, it dived 309.49 points or 0.37 percent to 82,653.22.

The NSE Nifty dropped 32.40 points or 0.13 percent to 25,356.50.

Adani Ports was the biggest loser in the Sensex pack, declining 1.37 percent, followed by ITC, Bharti Airtel, NTPC, Maruti, Asian Paints, Sun Pharma, Power Grid, Hindustan Unilever and Larsen & Toubro.

In contrast, Bajaj Finserv, Bajaj Finance, IndusInd Bank, Tata Steel, Axis Bank and Tech Mahindra were among the gainers.

In Asian markets, Tokyo and Shanghai settled lower, while Seoul and Hong Kong ended in positive territory.

"The market took a breather and ended on a flat note after the previous day’s sharp uptick. Despite domestic CPI inflation being within the RBI's target band, the increase in food prices may influence the central bank to remain prudent on rates.

"Higher liquidity from FIIs to the domestic market and a slide in US 10-year yield increased the prospects of the FED rate cut, which will aid domestic sentiment," said Vinod Nair, Head of Research, Geojit Financial Services.

Retail inflation in August inched up to 3.65 percent, though vegetables and pulses witnessed price rise in double digits, according to official data released on Thursday.

The retail inflation based on the Consumer Price Index (CPI), however, remained below the Reserve Bank's median target of 4 percent for the second month in a row. It was at a five-year low of 3.6 percent in July. The headline inflation was 6.83 percent in August 2023.

European markets were trading higher in the mid-session deals. The US markets ended with gains on Thursday.

A sharp fag-end rally on Thursday drove the BSE benchmark to the 83,000 level for the first time. The barometer surged 1,593.03 points or 1.95 percent to hit its lifetime intra-day peak of 83,116.19. The index ended at a record high of 82,962.71, up by 1,439.55 points or 1.77 percent.

The NSE Nifty surged 470.45 points or 1.89 percent to settle at a record closing high of 25,388.90. The benchmark hit its fresh all-time intra-day high of 25,433.35, a jump of 514.9 points or 2 percent.

Foreign Institutional Investors (FIIs) bought equities worth ₹7,695 crore on Thursday, according to exchange data.

Global oil benchmark Brent crude climbed 1.03 percent to 72.71 a barrel.