The market has declined for the fourth day in a row, witnessing the biggest decline in five months. Sensex has erased its psychological level of 60,000 mark and Nifty 50 has fallen below 17,600. It is being said that Sensex and Nifty 50 closed at their lowest level since October 19 last year.
The Sensex closed 927.74 points or 1.53% lower at 59,744.98. While the Nifty 50 closed at 17,554.30, down 272.40 points or 1.53%.
Investor wealth as Sensex falls below 60,000 mark There has been a withdrawal of 3,87,228.19 crores on Wednesday.
ITC was the only stock in the green on the Sensex, however, the bearish bandwagon limited the gains.
Bajaj and HDFC twins dominate the market. Bajaj Finance emerged as the top loser with a fall of around 2.9%. While its parent company Bajaj Finserv declined by 2.4%. Besides this, HDFC Bank and HDFC declined by around 2% each. M&M stock was the other laggard on the Sensex, falling 2.5%.
The share price of Reliance Industries also declined sharply. locked in at heavyweight There was a decline of 2.3% on profit booking at Rs 2,379 per piece.
Also, the worst day has been seen in the shares of Adani Group. The group’s market capitalization is now down 70% from its peak, from around Rs 25 lakh crore to Rs 7.55 lakh crore. All Adani shares closed in the red mark.
In the broader markets, the BSE Sensex Next 50 declined heavily by 623 points or 1.3%. While the Midcap and Smallcap index also recorded a huge decline of about 286 points and 304 points.
Ajit Mishra, VP – Technical Research, Religare Broking, said the pressure was broad-based with the continuing decline in banking giants combined with another fall in IT and energy majors largely weighing on sentiment. In line with the trend, the broader indices also fell by over one per cent.
In terms of sectoral indices, BSE Bankex was the top gainer, shedding around 746 points or 1.62% against its peers. Meanwhile, the Bank Nifty contracted by around 678 points or 1.67%.
Among other sectoral indices, IT index declined by 349 points and metals by 338 points on BSE. Auto and consumer durables also declined by 339 points and 382 points respectively. Capital Goods declined by 426 points. The financial services and energy indexes were down 1.7% and 1.5%.
Shrikant Chauhan, head of equity research (retail), Kotak Securities, said, “The overnight fall in US markets rattled Indian stocks as heavy selling across the board resulted in Sensex falling nearly 1,000 points and breaching the crucial 60,000-mark.” DOWN. Markets were already range bound with a negative bias in the past few sessions and today’s sharp fall could further add to the pressing concerns of rising interest rates, high inflation and slowing global growth going forward. “
But Vinod Nair, Head of Research, Geojit Financial Services, also pointed out that the re-emergence of the Cold War between the US and Russia has created apprehension in the market. While this should be a short-term effect, there is growing concern over the fear of sanctions against Russia and the degree of its impact on the economy, particularly food and oil exports.
Nair said, “Markets are still recovering from the pandemic, and high interest and inflation are dominant in the background. It is believed that this war will be fought on the economic front, which will limit its impact on strong economies like the US and India.” The wait for Fed and RBI minutes to be released are other key factors keeping investors on edge.”
At the interbank forex market, the Indian rupee closed at 82.85 per dollar — marginally lower than the previous day’s print of 82.79.
On Indian rupee, Dilip Parmar, Research Analyst, HDFC Securities said, Indian rupee was an average performer among Asian currencies amid dubious central bank dollar supply in the OTC market. However, the rupee’s direction remained down due to stronger greenback in view of the minutes of the FOMC meeting.
Going forward, Chauhan said, “Technically, Nifty has formed a long bearish candle on the daily chart and formed a lower top on the intraday chart, indicating further weakness from current levels. However, since The market is in the oversold zone, so we can see a sharp pullback rally if the index trades above 17600. 17600 will now be a key level for traders and above this the pullback move will continue till 17700-17750. On the other hand, the index Below 17600, may slip further to 17500-17475. Contra traders can take long bets near 17475 with strict support losses at 17440.”
Mishra said, “The trend is showing continuation of this tone, with the next key support around 17250-17400 area. In case of any rebound, 17700-17900 area will act as a strong resistance. Traders should Should continue with a”. Selling on the rise “approach and limit positions.”
On Bank Nifty, Kunal Shah, Senior Technical & Derivatives Analyst, LKP Securities said, “Bank Nifty index continues to face selling pressure from higher levels. The index is now trading in an oversold zone and if sustains above 40000 So it can become a witness.” Pullback rally towards 40600/40800 levels.”
Meanwhile, for the rupee, Parmar said, “Before the monthly end, we may see rupee close to 83 levels amid large derivative positions.” In the near term, he sees spot USDINR to trade in the range of 82.50 to 83.
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