Business News Desk – On Wednesday (January 8), after day-long fluctuations, the domestic stock markets recovered from lower levels. Nifty fell 18 points to close at 23,688. Sensex fell 50 points to 78,148 and Nifty Bank fell 367 points to 49,835. There was a weak start in the morning. Sensex-Nifty were seen swinging between red and green marks with very minor changes. But after this the market started trading with a huge fall. Sensex fell 580 points to 78,600 level. Nifty was seen trading around 23,500 with a fall of 170 points. Bank Nifty fell at the level of 49,400 with a big fall of 790 points. The Midcap 100 index fell by 1100 points and the Smallcap index also fell by 400 points.
Why did the market fall?
Market guru Anil Singhvi said mid-smallcap stocks spoiled the mood. Concerns over expensive valuations led to sharp selling. The fall in Nifty was minimal due to strength in Reliance and Oil & Gas shares. There was sharp selling in banking stocks due to weak GDP estimates. For Nifty, 23350-23500 will be strong support, 23700-23800 will be the upper range. For Bank Nifty, 49075-49375 will be strong support, 50200-50450 will be the upper range. If Nifty closes below 23500, Bank Nifty closes below 49750 then weakness will increase.
Dr Reddy, ONGC, Eicher Motors, Reliance, PowerGrid were among the gainers on Nifty in the morning. Whereas, the biggest decline was recorded in Tech Mahindra, Shriram Finance, IndusInd Bank, Wipro, SBI Life. Out of 30 shares of BSE Sensex, only 9 shares were in the green, the remaining 21 shares were in decline. The biggest decline was in Zomato. After this, shares like Adani Ports, IndusInd Bank, Tata Steel, NTPC, HUL were trading with a decline. Whereas, Reliance, TCS, Maruti, M&M, Sun Pharma, ICICI Bank were in the lead.
Compared to the previous closing, the Sensex opened at 78,319, up 120 points. Nifty opened 39 points higher at 23,746 and Bank Nifty fell 1 point at 50,201. There were slight gains in Healthcare and Oil & Gas indices, all other indices remained in the red. There were slightly weak global triggers today. There was a decline in American markets yesterday. On top of that, the forecast of slow GDP growth could be negative news for the market. The government released economic growth estimates on Tuesday. The government had expected 6.4 percent GDP growth in the first advance estimate. In this financial year, the country’s economic growth may be the slowest in the last 4 years. In the morning Nifty was trading around 23,768 with a slight fall. In the pre-opening, there were indications of the market opening with a slight rise. An important news for investors is that 6 new shares will be included in the F&O. Castrol, Gland Pharma, NBCC, Phoenix Mills, Solar Industries and Torrent Power will enter from January 31.
Updates from global markets
Yesterday, markets fell due to fear of not reducing interest rates in America and selling in tech stocks. After a strong start, the Dow fell 180 points, falling 400 points from the day’s high, while the Nasdaq fell 375 points. 95 percent of experts do not expect a fall in interest rates in the US Fed meeting to be held this month. Apart from this, the 10-year US bond yield has increased for the first time in eight months and has reached 4.7 percent.
Dow futures were up nearly 30 points ahead of the Fed minutes today. Nikkei slipped 300 points. Crude oil has increased by one percent to reach a three-month high of more than $77. Gold has increased by $15 and closed at $2665 while silver remains strong above $30 for the fourth consecutive day. In the domestic market, gold rose by Rs 350 and closed above Rs 77,500, while silver rose by about Rs 300 to close above Rs 90,800.
