Indian Markets Slip Near Record Highs Amid Profit-Taking

Indian equity benchmarks, the Sensex and Nifty, concluded Friday's trading session lower, succumbing to profit-taking pressures as they approached record territory. The banking sector, spearheaded by heavyweights such as ICICI Bank and HDFC Bank, experienced notable declines, contributing to the overall market dip. This downturn occurred amidst a broader global selloff that was exacerbated by inconclusive U.S. jobs data, thereby casting a shadow over the prospects of interest rate cuts.

The S&P BSE Sensex saw a reduction of 400.76 points, closing at 85,231.92, while the NSE Nifty 50 dropped 124 points to settle at 26,068.15. Market analysts attributed the volatility and subsequent decline to a combination of profit-booking after a brief uptrend, a soft manufacturing Purchasing Managers' Index (PMI) reading, a weakening Indian Rupee, and increasing concerns over potential delays in India-U.S. trade discussions.

Technical indicators suggested further near-term weakness for the Nifty, with a bearish Harami pattern forming on the hourly chart and the index trading below its 21 Exponential Moving Average. Resistance levels were identified, indicating potential downward movement unless a significant upward breach occurred. The market sentiment was overwhelmingly bearish, with a majority of stocks traded on the BSE showing declines.