New Delhi [India], January 3 (ANI): Indian stocks took a breather after a three-day rally, with analysts partially attributing it to profit booking.

Sensex closed at 79,223.11 points, down 720.60 points or 0.90 per cent, while Nifty closed at 24,004.75 points, down 183.90 points or 0.76 per cent.

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Among the sectoral indices, Nifty bank, IT, pharma, healthcare, and financial services were the top losers today, NSE data showed.

"The markets took a pause after a three-day rally, shedding over half a percent...Sectoral trends were mixed, with energy and FMCG sectors ending in the green, while IT and pharma closed in the red. The broader indices mirrored the benchmark's movement, finishing with a decline of nearly half a percent each," said Ajit Mishra - SVP, Research, Religare Broking Ltd.

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"This pullback appears to be a normal pause following the recent recovery and could persist until the Nifty decisively crosses the next resistance at 24,250."

Religare Broking continues to recommend focusing on stock-specific opportunities in line with sectoral trends. "In the near term, sectors like FMCG, auto, and energy are expected to outperform, so positions should be aligned accordingly."

Indian stock indices were on a strong footing at the start of 2025. The Sensex and Nifty rallied both on January 1 and January 2. On Thursday, benchmark indexes logged their best session in six weeks.

"The year has started on a positive note, with the Nifty gaining 1.25 per cent and the Nifty 500 advancing 1.4% in the first week. This broad-based rally signals a stable start to 2025, setting the stage for optimism. While market valuations appear stretched, particularly in mid-and small-cap segments, history reminds us that such conditions can persist longer than expected. Investors should focus on businesses with steady earnings growth and the ability to adapt to evolving trends," said Krishna Appala, Sr. Research Analyst, Capitalmind Research.

Experts noted that the upcoming Q3 results season will now decide the market's movement. Afterwards, the market is expected to shift focus towards expectations from the Union Budget and the policy decisions of the Trump 2.0 administration.

The Sensex now remains nearly 6000 points below its all-time high of 85,978 points.

In 2024, Sensex and Nifty accumulated 9-10 per cent each. In 2023, Sensex and Nifty gained 16-17 per cent, on a cumulative basis. In 2022, they gained a mere 3 per cent each. Weak GDP growth, foreign fund outflows, rising food prices, and slow consumption were some of the hurdles this year, keeping many investors at bay in 2024. (ANI)

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