The Indian equity markets retreated on Friday from their recent record highs as investors booked some profits after the recent rally. The S&P BSE Sensex declined 236 points to 72,173 in early trade, while the NSE Nifty 50 fell 74 points to 21,703.
The markets had hit fresh lifetime highs in the previous session, with the Sensex closing at an all-time peak of 72,410 and the Nifty settling at 21,779. However, profit booking at higher levels led to the indices paring some gains on Friday morning.
Among the prominent gainers on the Sensex were Tata Motors, Wipro, Bajaj Finserv, Maruti Suzuki, and ITC. On the other hand, NTPC, State Bank of India, Infosys, Titan, and Power Grid Corporation were among the top losers.
Broader markets were mostly in the green, with mid-cap and small-cap indices trading higher. However, the Nifty 100 index of large-cap stocks was down 0.1%. In specific stocks, Tata Consumer Products and Tata Motors saw strong buying interest.
On the sectoral front, auto and FMCG stocks bucked the weak trend and traded higher. But oil & gas and PSU bank shares faced selling pressure.
The recent rally in Indian markets has been driven by consistent foreign fund inflows. On Thursday, foreign institutional investors (FIIs) bought equities worth Rs 4,359 crore. The rupee also appreciated against the US dollar for the second straight day after closing 14 paise higher at 83.20 on Thursday.
Going ahead, investors will continue to watch global cues, foreign flows, and currency movement. Any return of volatility in global markets could once again prompt profit-taking at record highs domestically.
