Stock market today: Extending Monday’s late sell-off for yet another session, key benchmark indices of the Indian share market went further down during Tuesday session. Nifty 50 index opened slightly higher at 21,751 levels but soon came under the sell-off stress and touched intraday low of 21,555 mark, logging intradaya loss of around 186 points on Tuesday.
Sensex today opened higher at 72,332 and touched intraday low of 71,613 levels, logging over 650 points loss during Tuesday dealings. Similarly, Nifty Bank index today opened 48,194 levels and went on to hit intraday low of 47,814 within few hours of stock market’s opening bell.
Why share market is going down today?
According to stock market experts, Indian stock market is down today for two major reasons — first and foremost reason is overbought condion of the Indian share market and second is upcoming Q3FY24 results season. They said that market is rebalancing ahead of the new results season and overbought condition of the key benchmar indices was ideal for profit booking trigger.
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On why Indina share market is going down today, Sandeep Pandey, Founder at Basav Capital said, “Indian stock market was in overbought condition. In last two months, Nifty 50 index has ascended to the tune of near 3,000 points, BSE Sensex surged around 9,400 points in this period whereas Nifty Bank index climbed around 6,350 points in this time. Most importantly, this rise in Indian markets was continuous. So, one should take this correction as a healthy correction because profit booking by both DIIs and FIIs was over due.”
Pointing towards upcoming Q3FY24 results season, Saurabh Jain, Vice President — Research at SMC Global Securities said, “Profit booking was overdue as FIIs and DIIs remained net buyers in last two months. This profit booking was widely expected as well because Q3 results season is about to begin and Indian market has a history of rebalancing ahead of Q3 results season in the beginning of new year. So, this is just a profit-booking and rebalancing of the market on its own as it is preparing for the upcoming results season.”
Also Read: ‘Froth overdone in midcaps, smallcaps, switch to largecaps’
Stocks to buy today
On stocks to look at in current season, Saurabh Jain of SMC Global said that one can look at stocks in cappital goods, infrastructure, hotels and FMCG segment.
Advising bottom fishers to look at flagship large-cap stocks, Sandeep Pandey of Basav Capital said, “In recent rally, mid-cap and small-cap stocks have rallied the most whereas flagship large-cap stocks are yet to fully participate in this bull trend. so, I would advise bottom fishers to look at Nifty 50 stocks like Tata Consumers, ITC, JSW Steel and Wipro.”
Sandep Pandey said that one can look at Coal India shares as well. Though, it is not a Nifty listed stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decision.
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Published: 02 Jan 2024, 12:32 PM IST