The Indian stock markets declined drastically due to weakness in Asian markets, with the biggest decline in auto and consumer goods shares. The BSE Sensex was trading 645 points or 0.79 percent at 80,950 pm at 80,950 pm. On the other hand, the NSE Nifty fell 50 to 203 points or 0.82 percent to 24,609. Power Grid, M&M, ITC, Bajaj Finserv, HCL Technologies were among the most backward shares, while Tata Steel and Bharti Airtel were the highest profit on BSE. Meanwhile, in the Nifty 50, BEL and Tata Steel were seen trading in the overbott zone on the shares chart. Read analysis
On the broad market front, the BSE Midcap was 0.16 percent below the BSE Smallcap 0.23 percent. Regularly, widespread selling was observed at all counters. In others, Nifty FMCG, consumer durables declined by more than 1 percent, Nifty IT declined 0.87 percent and pharma by 0.9 percent. In the IPO Corner, until 11:30 am, the initial public offer of Bellariz Industries (on the second day) received 1.23 times subscribed, with non-institutional investors 3.24 times more than their allotted quota. The issue of Borana Vivs (Day 3) received 53.02 times the subscription, headed by retail individual investors.
The Indian stock market is witnessing a major decline on Thursday (May 22) amid a weak trend in global markets. The decline in veteran shares like Reliance Industries (RIL), HDFC Bank and Infosys played the biggest role in pulling down the benchmark index Sensex. At the same time, shares of auto and consumer goods companies saw the biggest decline. The 30 -share BSE Sensex today opened up to 81,323 with more than 270 points. In the second half, selling was seen in the market. At 2:32 pm, the Sensex was trading at 80,554.26 with a decline of 1042.37 points or 1.28%. The shares except two companies involved in the Sensex were in loss. Similarly, the Nifty-50 of the National Stock Exchange (NSE) also opened at 24,733.95 points. Later the decline further increased and it closed at 24,481.70 points at 2:33 pm, 331.75 points or 1.34 percent.
Three main reasons for the decline in the stock market on Thursday 22 May?
1. On Thursday, Asian markets saw a decline. Wall Street declined on Wednesday due to investors being cautious amid growing fiscal concerns in the US. Japan’s Nikkei fell more than 0.7 percent. While the topics fell by 0.5 percent. KOSPI of South Korea dropped 1.1 percent and Australia’s ASX 200 0.4 percent.
All three major indices on Wall Street closed down with a decline. Investors reacted negatively to an increase in treasury returns. It was done due to the concern that the new American Budget Bill would put more pressure on the country already on the big losses.
2. Geeta Gopinath, the first Deputy Managing Director of the International Monetary Fund (IMF), has warned that the US is struggling with a very large fiscal deficit and needs to immediately remove its growing debt burden. He said this in an interview to Financial Times on Wednesday.
3. All other regional indices except Nifty Media were in red mark. The Nifty Auto saw the highest decline of 1.4 per cent. After this, Nifty FMCG and IT fell by 1.27 percent and 1.11 percent respectively. Pharma, PSU bank, private bank, sustainable consumer goods and other areas including oil and gas also declined from 0.5 to 1 percent.
Kranti Bathini, the equity strategist of wealthmills securities, said the decline in the market was mainly due to weakness in global markets. Apart from this, there are also concerns about American debt, which may also affect other economies. Natural improvement after the previous month’s rise – all these together are the main reasons for the current decline.
How was the stock market performance on Wednesday?
The market closed with an early lead on Wednesday. The BSE Sensex rose 410.19 points or 0.51% to close at 81,596.63. The Nifty 50 also rose 129.55 points or 0.52% to close at 24,813.45. The market closed up with an increase in shares of HDFC Bank, ICICI Bank and Bharti Airtel. However, the selling of foreign investors (FIIs) slowed down the market.