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Below the Quote on Daily Market Wrap by Mr. Ajit Mishra – SVP, Research, Religare Broking Ltd

"Markets experienced a sharp decline, erasing over one and a half percent of recent gains. After an initial uptick, the benchmarks tumbled sharply, driven by few weak quarterly updates from the banking sector and concerns over new virus (HMPV) cases reported in India. As a result, the Nifty index slid below its 200-day exponential moving average (200 DEMA), closing at 23,616.05. The selling pressure was widespread, with metal, energy, and realty sectors leading the losses. Broader indices also faced significant pressure, recording losses of 2.7% to 3.1%. 

This pullback in the Nifty index, coupled with a spike in volatility (India VIX), has disrupted the recovery trend, signaling potential challenges ahead. The banking sector's recent underperformance, combined with weakness in the midcap and smallcap segments, has intensified the bearish sentiment. However, the pharma and healthcare sectors are expected to maintain their resilience, while other sectors may continue to face downward pressure. Traders are advised to adjust their positions accordingly."

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