Why did the Indian stock market fall after hitting record highs on Monday?

Profit-booking at elevated levels, weak global cues, and a record low rupee against the dollar caused the market to retreat from its intraday highs.

How did India's strong GDP growth affect the RBI's interest rate policy outlook?

The robust GDP growth of 8.2% in the second quarter dampened expectations of a near-term RBI rate cut, pushing bond yields higher.

What caused the Indian Rupee to hit an all-time low against the US dollar?

The rupee's decline was primarily driven by sharply higher commodity prices, increasing India's import bill and putting pressure on the currency.

Home / Business and Economy / Indian Markets Retreat After Record Highs Amidst Global Woes

Indian Markets Retreat After Record Highs Amidst Global Woes

1 Dec

•

Summary

Benchmark indices gave up early gains, closing lower despite reaching fresh all-time highs.
The Indian rupee touched a record low against the dollar due to import costs.
Strong GDP growth dampened expectations of a near-term RBI rate cut, impacting sentiment.

Indian Markets Retreat After Record Highs Amidst Global Woes

Indian equity benchmarks retreated from record highs on Monday, with both the Nifty and Sensex closing marginally lower after encountering selling pressure at elevated levels. This profit-booking trend was influenced by subdued global sentiment and the Indian rupee hitting an all-time low against the US dollar. The session began with optimism driven by robust second-quarter GDP data, which revealed an 8.2% expansion, the fastest in six quarters. However, this strong growth figure diminished hopes for an immediate interest rate cut by the Reserve Bank of India, contributing to a rise in bond yields.

Sectoral performance on the day was varied. While Nifty Auto, Metal, IT, and PSU Bank indices exhibited strength, Realty, Healthcare, and Pharma sectors faced declines. In the broader market, the Nifty Midcap 100 remained flat, while the Nifty Smallcap 100 saw a modest gain. Top gainers on the Nifty 50 included UltraTech Cement, Tata Motors, and Maruti Suzuki. Conversely, Max Healthcare, IndiGo, and Bajaj Finance were among the notable laggards. Market breadth indicated a slight weakness, with more stocks declining than advancing on the BSE.