Today, in the first trading session of the week, the market opened with a decline, and the decline intensified during the trading day. Till market close, the market witnessed a sharp decline due to massive selling. Benchmark indices closed near their day’s lows. Nifty broke the support level of 26,000 today. Nifty fell 226 points to close at 25,961. Sensex fell 610 points to close at 85,103. Bank Nifty fell 539 points to close at 59,239. MIDCAP100 fell 1050 points to close at 59544. SMALLCAP index fell 398 points to close at 17109. In the currency market, the rupee weakened by 9 paise to close at 90.07/$ against the dollar.
Which stocks fell, which rose?
The stock market witnessed sharp volatility today, with many blue-chip stocks falling significantly. Among the Nifty50, Indigo was the biggest loser, falling 9%. BEL fell 5%, JSW Steel fell 3.6%, and Nestle fell 2.6%. On the other hand, among Nifty50 gainers, Tech Mahindra was the top gainer with a gain of 1.3%, while Wipro, HCL Tech and Reliance Industries also registered marginal gains. Keynes Tech was most under pressure in the consumer durables sector, where the share price fell 12.4%. PG Electroplast fell 5.1%, Whirlpool 3.5%, and Crompton Greaves Consumer fell 2.8%.
Selling pressure on news-related factors was also heavy, with Biocon falling 2.3%, and Travel Food Services and Tirumalai Chemicals both down 2.4%. Among the top losers on the broader market, Vesol Energy and SPARC both fell 8.5%. Sterling & Wilson fell 7.5% and HCC dropped 7.4%. Among rising stocks, Latent View topped the list with a rise of 7.9%, while Shriram Piston closed up 5.8%, Anup Engineering up 3.4% and Niva Bupa closed up 2.7%.
Why did the stock market fall so sharply?
According to market expert Anil Singhvi, today’s fall is surprising and shocking. He said the decline due to bad news is understandable, but all the triggers today were positive. Global markets were strong, FII selling was limited, DIIs were actively buying, and RBI interest rate cut was also positive for the market. Despite this, such a sharp decline is surprising. However, FIIs sold heavily today, causing the market to fall sharply. The weak rupee also spoiled the sentiment.
Today there were more sellers than buyers in small-cap stocks. Also, due to infusion of money into IPOs and block deals, there has been a significant decline in fund purchases of small-cap stocks. This is the reason why panic selling intensified. At around 1:30 pm, Nifty had fallen 200 points to below 26,000. Sensex was also down by more than 700 points and was trading at around 84,990. India VIX rose by 8%. Sectoral indices like Realty, PSU Bank and Media witnessed heavy selling, but all other indices were also trading sharply lower.
After opening, Sensex was trading down 70 points and Nifty down 50 points. Most of the sectoral indices were trading in the red. Only media and oil and gas sectors were in the green. India VIX was up 3%. IndiGo’s share price had fallen more than 5% at the time of opening.
On Nifty 50, Indigo, Eternal, BEL, Bajaj Finance, Bajaj Finserv, Trent and Sun Pharma were the top losers. Whereas, Axis Bank, TMPV, Tata Consumer, Reliance, Tata Steel, Tech Mahindra, HUL, JSW Steel and TCS were trading higher. Out of 50 stocks in the index, only 13 stocks were trading in the positive range. On Friday, the US market witnessed gains at the end of a limited trading session, while on the domestic front, major changes in the pre-open session and several big corporate news will keep investors in focus.
Pre-open session in futures segment will start from today
From today, pre-open session will also be implemented in the futures segment on both the exchanges. This will include all stock and index derivatives of the current month. The exchange hopes this will reduce volatility and make opening price discovery more transparent.
Important meeting on India-US trade deal from today
A US delegation is visiting India this week to accelerate talks on a trade deal. The three-day meeting from December 10 to 12 will focus on finalizing the first phase of the deal. This is an important macro trigger for the market.
