On Tuesday, the stock market witnessed a big fall on the weekly expiry of Nifty. Markets closed near the day’s low. Sensex fell by nearly 530 points, while Nifty fell by 170 points. Nifty also broke the psychological level of 25,900. Barring gains in indices like FMCG and consumer durables, all other sectoral indices were trading in the red in the last hour. Realty, metal and private bank indices witnessed huge decline.
Why did the market fall so much?
1. Sentiment got spoiled due to weakness in rupee.
2. Selling pressure from FIIs increased.
3. Stop-losses were triggered on long positions when yesterday’s low was broken on the day of weekly expiry.
Stocks in Action
Bharti Airtel:
– Good performance in fundamentally strong stocks.
– This stock was mentioned in “Opening Heroes” this morning.
Godrej Consumer:
– Buying returned in FMCG stocks.
– This stock was featured in this morning’s “Stocks Insights”.
Axis Bank:
– Huge fall in stock after concall.
– Possibility of increase in technical slippage in December quarter.
– This stock was mentioned in “Opening Zero” this morning.
After opening, Sensex was trading down over 300 points, while Nifty was down around 100 points. Bank Nifty also fell 170 points. Broader market was also trading in the red. Today all sectoral indices were trading down, especially IT, realty, metal and banking which saw the biggest decline.
Today all sectoral indices were trading down, especially IT, realty, metal and banking which saw the biggest decline. Bharti Airtel, Tata Consumer, Apollo Hospitals, Asian Paints, SBI Life, HDFC Life, Titan and Grasim were among the gainers. Whereas, Eternal, Axis Bank, Infosys, JSW Steel, HCL Tech, Tata Steel, Hindalco and Jio Fin were among the top losers.
Compared to the previous closing, the Sensex opened at 85,213, down 188 points. Nifty opened 76 points down at 25,951. Bank Nifty opened 176 points down at 59,288. In the currency market, the rupee opened 6 paise weaker at 90.79/$ against the dollar.
Before the market opened, several important signals were visible for investors on both the global and domestic fronts. Fall in US markets, softening of crude oil prices, and continued selling by FIIs indicate a slightly weak sentiment, while domestically, IPOs, policy decisions, and macro data may decide the market direction.
Effect of profit-taking in American markets
After a strong start, profit-taking was seen in US stock markets. Due to continued selling in AI stocks, the Dow Jones slipped nearly 250 points from its day’s high and ultimately closed 40 points lower. The Nasdaq fell nearly 140 points to a three-week low, while the S&P also remained under pressure. Dow futures are trading nearly flat ahead of November jobs data, which is scheduled to be released today.
