FX.co ★ Sensex Dips But Points to Weekly Gain

India's stock market saw a downturn on Friday morning, with a decrease of 204 points or 0.2%, taking the index down to 82,320. This decline interrupted the previous day's rally, which saw the BSE Sensex reach its highest point in over seven months. The fall was primarily attributed to profit-taking activities. Investors are also in a wait-and-see mode ahead of important economic data from China, one of India's primary trading partners, scheduled for release next Monday. This includes key metrics such as industrial production, retail sales, and an interest rate announcement. Domestically, India recorded its largest trade deficit since November 2024, driven by a significant rise in imports. Nevertheless, positive developments in trade negotiations between the United States and India offered some support to the market. The Nifty IT sector was a significant contributor to the overall market decline, with the broader Nifty 50 index slipping by 0.2% to below 25,050. Noteworthy declines were observed in stocks such as Bharti Airtel (-2.8%), IndusInd Bank (-2.7%), SBI (-1.5%), and HCL Tech (-1.4%). For the week, the index is projected to finish with a 3.6% gain, recovering from the previous week's losses, bolstered by reducing geopolitical tensions between India and Pakistan.