Home / Business and Economy / Indian Markets Pause: Profit Booking Hits Nifty
Indian Markets Pause: Profit Booking Hits Nifty
27 Apr
Summary
- Nifty 50 declined nearly 2%, ending its winning streak.
- Brent crude climbed around 7%, fueling inflation fears.
- Indian rupee depreciated 1.8% against the US dollar.
Indian equity markets experienced a notable pause last week, with benchmark indices entering a profit-booking phase after a sustained rally. The Nifty 50 saw a decline of nearly 2%, concluding its two-week gaining streak, while the Bank Nifty demonstrated greater resilience, easing by less than 1%.
The market sentiment shifted towards caution, influenced by a confluence of factors. A significant 7% surge in Brent crude prices and a nearly 12% rise in WTI crude fueled concerns about potential inflationary pressures. Additionally, the Indian rupee depreciated by 1.8% against the US dollar, closing at 94.23.
Earnings season also played a role, with weaker-than-expected results and guidance from IT majors like HCL Technologies and Infosys impacting sentiment in the technology sector. Foreign institutional investors (FIIs) continued their selling spree, offloading Rs 17,140 crore, although domestic institutional investors (DIIs) provided some support with net purchases of approximately Rs 9,782 crore.
Looking ahead to the week of April 27 to April 30, 2026, market analysts anticipate a period of consolidation rather than a sharp directional move. The Nifty 50 is expected to trade within the range of 23,600 to 24,700, with immediate support seen at 23,600-23,500. A breach below this could open further downside towards 23,100.
The Bank Nifty is also predicted to consolidate, likely trading between 54,500 and 57,500. Short-term support for the banking index is identified around the 54,500-54,000 zone. Investors are advised to remain selective, focusing on stock-specific opportunities as the earnings season progresses.
