The stock market faced a notable downturn as the S&P BSE Sensex dropped by 398.13 points, closing at 81,523.16, while the NSE Nifty50 declined by 122.65 points, settling at 24,918.45. This decline reflects investor apprehension as they await critical economic data that could influence market trends.
Among the sectoral indices, the Nifty FMCG index was the sole sector to post gains, showcasing resilience in the face of broader market declines. In contrast, most other major Nifty sectoral indices ended the day in negative territory, with Nifty Oil & Gas and Nifty Auto experiencing particularly sharp declines.
On the Nifty50, the top gainers included Bajaj Auto, Asian Paints, Bajaj Finance, Shriram Finance, and Britannia. These stocks managed to perform well despite the overall bearish market conditions. In contrast, Tata Motors, ONGC, Wipro, L&T, and Adani Enterprises were among the biggest losers. Tata Motors, specifically, saw its shares fall nearly 6% after UBS, a leading brokerage firm, issued a negative report concerning the company’s operational outlook.
Vinod Nair, Head of Research at Geojit Financial Services, commented that the domestic market's performance mirrored the broader trends observed in Asian markets. He attributed the market’s cautious stance to a correction in commodity prices, notably crude oil, which has recently plummeted to around $70 per barrel. This price drop has influenced investor sentiment, compounded by concerns over a slowing Chinese economy.
Investors are keenly awaiting the release of inflation data from both the US and India. The US Consumer Price Index (CPI) is anticipated to show an uptick, reflecting rising inflationary pressures, while domestic inflation in India is expected to remain relatively stable. This uncertainty is also heightened by the Bank of Japan’s (BoJ) signals of a potential rate hike should inflation remain persistently high. Such global economic indicators are crucial for shaping market expectations and influencing investment strategies.
The broader market sentiment remains cautious, with investors keeping a close eye on these economic indicators and geopolitical developments, which are expected to significantly impact market dynamics in the near future.
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