In the latest stock market updates, the benchmark indices have shown a decline, reflecting ongoing market volatility and economic uncertainties. The Sensex and Nifty, two of India’s primary stock market indices, ended the trading session on a negative note. The S&P BSE Sensex fell by 692.89 points to close at 78,956.03, while the NSE Nifty50 dropped by 208 points, settling at 24,139.
This decline has been attributed to a combination of factors, including geopolitical tensions and upcoming inflation data from the US, which have contributed to the cautious sentiment in the market. The broader market indices mirrored this downward trend, experiencing losses across the board.
Among the sectors, the Nifty Bank and Nifty Financial Services indices were among the biggest losers, reflecting struggles within the banking and financial sectors. In contrast, the Nifty Consumer Durables sector showed some resilience, gaining 1.30% despite the overall market downturn.
Notable performers on the Nifty50 included Titan, Apollo Hospitals, Tata Consumer Products, Dr. Reddy’s, and HCLTech. These stocks managed to post gains amidst the market's general decline. However, significant losers included BPCL, HDFC Bank, HDFC Life, Shriram Finance, and ONGC, which saw substantial drops.
Analysts have weighed in on the near-term market outlook, indicating that the market remains in a correction phase. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd., noted that the market continues to struggle, losing nearly a percent as it remains in a correction phase. Despite a flat start, the Nifty gradually declined and closed near its low for the day. Mishra highlighted that the banking sector's ongoing difficulties are a major factor in the market's struggles, although IT majors have attempted to cushion the impact. He advised investors to be cautious with leveraged positions and wait for clearer market signals, noting that the Nifty may test the 24,000 support level.
Vinod Nair, Head of Research at Geojit Financial Services, pointed to mixed global sentiments and poor domestic indicators as contributing factors to the market's decline. The domestic market slipped into negative territory in the latter half of the trading session, influenced by uncertain global conditions. Nair also noted ongoing selling by Foreign Institutional Investors (FIIs) and high valuations as driving factors behind the market’s downturn. He mentioned that earnings growth has been disappointing this quarter, raising concerns about potential downgrades if the situation does not improve.
Rupak De, Senior Technical Analyst at LKP Securities, warned about the market’s near-term negative trend. De observed that the index repeatedly failed to break above the 21-day Exponential Moving Average (EMA), indicating a bearish sentiment. He suggested that 24,250 now serves as a critical resistance level and advised that investors should consider selling on rallies. On the downside, the initial support level is around 24,000, and if the index falls below this threshold, further declines toward 23,700 could be anticipated.
Given the current market conditions, experts predict that the cautious sentiment is likely to persist in the near term. The Nifty’s failure to surpass key resistance levels, combined with persistent weakness in the banking sector, suggests that the market may continue to face challenges. Investors are advised to monitor the Nifty’s performance closely, particularly its ability to maintain the 24,000 support level. If this level is breached, further declines could be expected.
For retail investors, the recommended strategy is to approach any market rallies with caution and consider selling positions if the market fails to sustain upward momentum. Staying informed about global developments and domestic economic indicators will be essential for navigating the market in the days ahead.
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