Profit-Booking Spoils Dalal Street's Winning Streak, Sensex Drops 450 Points As Nifty Loses 25,200 Mark

Mumbai: Indian stock markets witnessed selling pressure on Friday as benchmark indices Sensex and Nifty extended their early losses amid weak global cues, profit-booking and concerns over rising inflation.

The BSE Sensex declined around 450 points, or 0.55%, to 81,457.74, while the NSE Nifty 50 dropped 182 points, or 0.71%, to 25,117 during early trading. The decline followed a strong November rally, during which the Nifty gained approximately 9.7%.

Sensex, Nifty Under Pressure

The Sensex opened at 81,833.78, down 77.23 points, while the Nifty began trading at 25,209.85, lower by 89.50 points. However, selling intensified after the opening bell, dragging both benchmarks further into negative territory. The Nifty slipped below the psychological 25,200 level as investors booked profits following recent gains.

Realty, Auto Stocks Decline

Sectoral performance remained largely negative, with Nifty Realty falling more than 1%. Nifty Chemicals, Auto and Cement declined by up to 1%, while banking, oil and gas, and consumer durable stocks also traded lower. Healthcare and pharmaceutical shares bucked the trend, with related indices gaining up to 0.39%.

Inflation Concerns Emerge

Market experts attributed the recent rally partly to aggressive foreign institutional investor buying and improving corporate earnings. However, rising inflation and expectations of higher interest rates have emerged as potential risks. India's October retail inflation reportedly reached 6.09%, raising concerns about further monetary tightening. Meanwhile, Brent crude climbed towards $95 per barrel amid renewed geopolitical tensions.

Global Markets Send Mixed Signals

Asian markets displayed mixed trends, with Japan's Nikkei gaining around 1%, while Hong Kong's Hang Seng and South Korea's KOSPI declined. Overnight, Wall Street ended lower, with the S&P 500 falling 0.35% and Nasdaq slipping 0.39%. Investors will monitor foreign fund flows, crude oil prices and inflation developments for further market direction.

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