Sensex slips 1,000 points from peak as profit booking drags markets lower

Indian equity benchmarks reversed early gains on Thursday, with the BSE Sensex falling sharply from its intraday high and the Nifty 50 hovering near the 24,100 mark, as investors turned cautious and booked profits.

By early afternoon, the Sensex was down 364 points, or 0.47 per cent, at 77,747.18, while the Nifty slipped 113 points, or 0.47 per cent, to 24,117.90. The decline followed a strong start to the session, during which the Sensex had surged over 600 points to 78,730.32 and the Nifty had climbed close to 24,401 before losing momentum.

Profit booking after recent rally
Market participants appeared to lock in gains after a robust rally in the previous session. On Wednesday, the Sensex had advanced more than 1,260 points, while the Nifty gained over 380 points, prompting some investors to take profits at higher levels.

Analysts said such consolidation could be healthy for the market after recent gains, with a phase of range-bound movement likely before any sustained upward move.

Weakness in key sectors
Selling pressure in automobile and FMCG stocks weighed on overall sentiment. Shares of companies such as Britannia Industries and Nestle India edged lower, while auto majors including Hero MotoCorp and Eicher Motors also declined.

Losses in these sectors, which hold significant weight in benchmark indices, contributed to the broader market pullback.

Resistance at higher levels
Technical factors also played a role in the reversal. The Nifty faced resistance near the 24,400 mark, a level that analysts had identified as a key hurdle. After briefly touching this level, selling pressure intensified, leading to a retreat in prices.

Market strategists noted that volatility may persist in the near term, with the possibility of further consolidation before the next directional move.

Banking stocks add to pressure
The Nifty Bank also came under pressure, declining over 1 per cent from its intraday high in line with the broader market trend.

Overall, the session reflected a cautious undertone, with investors balancing recent gains against prevailing uncertainties, including global developments and sector-specific headwinds.

With PTI, IANS inputs