Markets Snap Six-Day Rally

After a week-long winning streak, Indian equity markets turned volatile on Friday, August 22. The Sensex fell over 550 points while the Nifty slipped near 24,900, with broad-based selling seen across key sectors. Traders preferred profit-booking ahead of US Fed Chair Jerome Powell’s crucial speech at the Jackson Hole symposium.

At 10:30 a.m., the Sensex was down 526 points at 81,474.22, while the Nifty dropped 170 points to 24,913.30.

Sector-Wise Performance

Almost all major indices traded in the red, barring pharma and consumer durables. Financials and banking stocks slipped up to 1%, while IT shares also corrected nearly 1% after their recent rally. Heavyweights like HDFC Bank, HCL Technologies, Hero MotoCorp, Grasim, and Asian Paints fell up to 2% intraday. On the other hand, Bharat Electronics, Bajaj Finance, Sun Pharma, M&M, and Trent were among the few gainers.

Also Read: Powell’s Potential Hawkish Stance: A Major Risk for Overvalued Markets

Key Factors Behind the Fall

• Profit-booking after a six-day rally led to selling in banks, IT, and metals.

• Caution ahead of Powell’s speech, which is expected to guide the Fed’s policy direction.

• India VIX rose 2%, indicating higher volatility and risk aversion.

• Rupee weakened to 87.36, though FPI inflows cushioned the decline.

• Tariff concerns ahead of the August 27 deadline for 25% US tariffs on Indian goods kept investors nervous.

• Negative comments from US trade adviser Peter Navarro on India’s Russian oil imports also weighed on sentiment.

Market Insights & Update

Experts believe that while the rally has paused, technical indicators do not suggest a sharp collapse. Nifty’s support zone is seen between 25,033–24,977, and volatility will remain elevated until clarity emerges from Powell’s commentary and tariff developments.

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