Indian Markets Slide Ahead Of Powell’s Jackson Hole Speech

Indian equity benchmarks ended lower on Friday, snapping a six-day winning streak, as investors turned cautious ahead of U.S. Federal Reserve Chair Jerome Powell’s closely watched speech at the Jackson Hole symposium.

The BSE Sensex fell more than 500 points intraday, slipping below the 82,000 mark, while the Nifty 50 dipped under 25,000, retreating after days of strong momentum.

The pullback followed a sharp rally earlier this week, fuelled by optimism around India’s GST reforms and expectations of a potential S&P sovereign rating upgrade. Market sentiment, however, shifted as global investors awaited cues from Powell’s remarks on the Fed’s policy outlook.

Sectoral Performance

Financial stocks were among the biggest laggards, with the Nifty Financial Services index down about 0.4%. IT shares, which had gained nearly 3% over the past three sessions, also slipped as traders booked profits.

Broader market indices mirrored the benchmarks, with midcaps and smallcaps recording mild declines, reflecting a more cautious mood across investor segments.

Global Context

The weakness in domestic equities was in line with broader Asian markets, which were also subdued ahead of Powell’s speech. Investors globally are bracing for signals on whether the Fed will maintain its tightening stance or move toward policy easing in the coming months.

Outlook

Analysts noted that while today’s dip was expected after the recent surge, the medium-term outlook for Indian markets remains constructive, supported by strong domestic fundamentals and continued inflows into equities.