Markets slips for second straight day; Jackson Hole, CAS takes centre stage

Markets experienced a second consecutive day of decline on Thursday, with benchmark indices, the Sensex and Nifty 50, closing lower due to broad-based selling across various sectors. PSU banks, metals, and heavyweight financial stocks suffered significant losses, while a volatile final few minutes added to the market turmoil. The Sensex ended at 76,933.59, down 0.70%, while the Nifty 50 settled at 24,090.85, off 116 points or 0.48%, marking its weakest close in six sessions.

The damage intensified during the Closing Auction Session, with the Sensex shedding nearly 2,500 points, or over 3%, in a short period, the first consecutive day of weakness since the inception of the Nifty in 1997. Market sentiment remained cautious as investors awaited further clarity, with Religare Broking's Ajit Mishra advising participants to maintain a stock-specific approach.

Despite global cues being largely positive, with Nvidia reporting stronger-than-expected revenue and Asian markets advancing, the Indian market failed to capitalize on the optimism. Key drags included HDFC Bank and select FMCG stocks, while Adani Enterprises, Kotak Mahindra Bank, and Adani Ports emerged as the top Nifty gainers.

Sector-wise, pharma and consumer durables outperformed, while cement, PSU banks, metals, and media were heavily impacted. The rupee weakened slightly against the dollar at 95.54, while gold and silver prices retreated due to higher-than-expected US PCE inflation data. The Federal Reserve's upcoming address at the Jackson Hole symposium and India's July IIP data were expected to provide fresh insights into market sentiment.