The market broke a four-week rally and shut half a per cent lower at the end of July 28 as investors rushed for profits after the US Federal Reserve raised rates and hinted at more hikes. Strong monsoon, mixed earnings, and selling by foreign institutions added volatility.

The BSE Sensex lost 0.78% or 524.06 bps at 66,160.20, while Nifty50 shed 0.50% or 99bps to close at 19,646.

The broader indices outpaced the leading indices, with the BSE Small-cap index adding 1% and the Mid-cap index 2%. The BSE Large-cap Index ended lower.

The Nifty index did not move to 300 bps, shrugging off the positive developments among the worldwide bourses. The trend aligned with the market prospect after a stellar rally to uncharted territories. 

As per levels concerned, the index firmly refuses the pivotal support of 19,500. While on the higher end, 19,800-20,000 holds rigid resistance and a decisive move which could trigger the next rally.

On the sectoral front, the Nifty Realty Index increased by 5%, the Nifty Pharma Index was up by 4.8%, the Nifty Healthcare Index by 4.3%, and Nifty Media and Metal indices scaled by 3.5% each. However, the Nifty Bank, IT, and FMCG indices shed 1%.

The BSE Small-cap index added 1% with Thangamayil Jewellery, MSP Steel & Power, Foseco India, Godfrey Phillips India, Jyothy Labs, Indo Borax and Chemicals, Heubach Colorants India, Jai Balaji Industries, Mukand Jagsonpal Pharmaceuticals, Vesuvius India, Gallantt Ispat, Texmaco Rail and Engineering and Jain Irrigation Systems adding 20-52%.

Besides, Globus Spirits, Abans Holdings, Xchanging Solutions, Jindal Saw, Apcotex Industries, Coffee Day Enterprises, Can Fin Homes, Kriti Industries (India), Sharda Cropchem, Sportking India, Mahindra Logistics, Rail Vikas Nigam, Tanfac Industries, Rane Brake Linings, DCM Nouvelle, Chennai Petroleum Corporation and LG Balakrishnan and Brothers lost 10-18%.

Pharma stocks presented resilience from volatile trade amid a positive start to the earnings season and the potential of increased demand from advanced economies. Predictions of reduced US pricing issues and expanding operating margins also reinforced the sector.

The Fed’s decision to raise 25 bps aligned with the market prospects. However, better US GDP data for the second quarter impacted the domestic market, suggesting another rate hike. 

This week, Foreign institutional investors (FIIs) sold equities of Rs 3,074.71 crore, while domestic institutional investors (DIIs) subscribed equities worth Rs 5,233.79 crore. FII bought equities at Rs 14,623.18 crore, and DII sold equities at Rs 3,672.40 crore.