- Sensex drops over 1,000 points to 81,200, while Nifty 50 falls below 24,900.
- Financial sector leads the market decline amid investor profit booking.
- Strides Pharma hits an all-time high after USFDA approval for a new drug.
Indian stock markets witnessed a significant downturn on Friday, September 6, 2024, with the BSE Sensex plunging over 1,000 points to settle around 81,200.
Nifty 50 also faced sharp declines, dropping below the 24,900 mark. Investors seemed to be taking profits at record highs, anticipating volatility from upcoming U.S. economic data releases.
Profit-Booking and Global Concerns Weigh Heavily on Indian Markets
Meanwhile, individual stocks like Strides Pharma defied the broader market trend, hitting an all-time high of ₹1,394.95. The company‘s strong performance came after its Singapore-based subsidiary received USFDA approval for a generic version of Theophylline extended-release tablets. However, Max Financial Services, despite recent positive developments, saw its stock dip, reflecting the overall market weakness.
Several key stocks managed to outperform the market. Strides Pharma gained significant attention after its subsidiary in Singapore received approval from the U.S. FDA for a generic drug. The stock surged to an all-time high of ₹1,394.95, rising over 3.79% in intraday trading. This development comes as a boost for the pharmaceutical sector amid broader market turbulence.
Godfrey Phillips also remained in focus ahead of its upcoming board meeting on September 20. The company is set to consider a bonus issue in the ratio of 2:1, which has garnered interest from investors. However, the overall market sentiment remained negative, overshadowing such positive news as investors moved to liquidate holdings in anticipation of future volatility.
Max Financial Services witnessed a volatile session as well, despite three key developments in recent days, including a promoter stake sale. The stock initially gained but quickly reversed course, ending the day with a loss, reflecting broader market weakness. Investors remain cautious as external factors weigh on the domestic market outlook.
The Indian stock market’s sharp decline underscores investor caution amid profit-booking and global economic uncertainties. As market participants await key economic data from the U.S., volatility is expected to persist.
“Widespread profit-booking ahead of global economic data releases often leads to market corrections, creating opportunities for selective investments.”
