Stock market update: Markets decline in early trade after record rally

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Equity benchmark indices declined in early trade on Friday after the previous session's record rally on the emergence of profit-taking amid weak trends from Asian peers.

The 30-share BSE Sensex dived 200.03 points to 82,762.68 after beginning the trade on a positive note. The NSE Nifty dropped 67.5 points to 25,321.40, reported PTI.

Among the 30 Sensex firms, Asian Paints, Mahindra & Mahindra, ITC, Hindustan Unilever, Bharti Airtel, Sun Pharma, Infosys and Bajaj Finance were the biggest laggards.

Tata Steel, JSW Steel, Tata Motors and Power Grid were among the gainers.

In Asian markets, Seoul, Tokyo and Shanghai were trading lower while Hong Kong quoted in the positive territory.

The US markets ended with gains on Thursday.

Global markets are rallying ahead of the Fed rate cuts, and Indian markets are continuously reaching new highs, reflecting strong investor confidence.

"The focus is totally on the Fed action and Fed speak of September 18. But the September 12 Indian markets action is pointing to a classical flows pattern of equity markets getting inflows as the US dollar weakens on the back of Fed rate cuts. Markets will move sharply in anticipation of this. Some minor risk off is possible early next week, in the lead up to the FOMC announcement on Sep 18th night time in India. FIIs have cut the "caution" out from our "cautious optimism" and made us ardently "optimistic", Ajay Bagga, Banking and market expert, said while speaking on the stock market update, reported ANI.

A sharp fag-end rally on Thursday drove the BSE benchmark to the 83,000 level for the first time. The barometer surged 1,593.03 points or 1.95 per cent to hit its lifetime intra-day peak of 83,116.19. The index ended at a record high of 82,962.71, up by 1,439.55 points or 1.77 per cent.

The NSE Nifty surged 470.45 points or 1.89 per cent to settle at a record closing high of 25,388.90. The benchmark hit its fresh all-time intra-day high of 25,433.35, a jump of 514.9 points or 2 per cent.

Foreign Institutional Investors (FIIs) bought equities worth Rs 7,695 crore on Thursday, according to exchange data.

Global oil benchmark Brent crude climbed 0.40 per cent to 72.26 a barrel.

(With inputs from PTI and ANI)