Stock Market News: Pressure on the domestic stock market continued to increase ahead of the US Federal Reserve’s announcement on policy rates. On Tuesday, profit-booking dominated the shares of banking and oil companies, due to which the market closed with a decline for the second consecutive day. The Sensex closed at a two-week low of 84,666.28 with a huge fall of 436 points. At one time during trading this index had fallen to 719 points. Similarly, Nifty also showed weakness and it fell 120.90 points and closed at 25,839.65. In the initial phase of trading, Nifty had slipped to a low of 25,728.
Why is the market falling?
The biggest downward pressure in the market was seen in big private banks, oil companies and IT stocks. Among Sensex constituent stocks, Asian Paints, Tech Mahindra, HCL Technologies, Tata Steel, Maruti Suzuki, Sun Pharma, TCS, ICICI Bank, Bajaj Finance, UltraTech Cement, Mahindra & Mahindra and Tata Motors witnessed notable decline. However, shares of Eternal, Titan, Adani Ports, BEL, SBI, Bajaj Finserv, NTPC and Bharti Airtel showed strength and closed with gains.
Vinod Nair, head of research at Geojit Investments, said that the market is adopting a cautious approach ahead of the Federal Reserve’s announcement. Weakness of the rupee, continuous selling by foreign investors (FIIs) and uncertainty over the US-India trade agreement have weakened investor sentiment. According to Nair, the market came down under the pressure of IT stocks, while PSU banks, realty and consumer durables showed strength.
What did the experts say?
Lemon Markets analyst Gaurav Garg said that after the huge fall in the stock markets, there was some recovery. Sensex rose almost 450 points from its low and Nifty again came above 25,900. Despite this, both the indices finally closed in the red. Its impact was less visible in midcap and smallcap stocks. The BSE Midcap index rose 0.60%, while the Smallcap index registered a strong gain of 1.27%.
Talking about sectoral index, IT sector fell the most by 1.18%. Technology and auto sectors also declined by 0.72% and 0.63% respectively. Asian market signals also remained weak. The markets of Hong Kong, China and South Korea closed with losses, while Japan’s Nikkei remained in profit. There was initial strength in European markets, while American markets closed with a decline on Monday.
Meanwhile, foreign institutional investors sold shares worth Rs 655.59 crore on Monday, while domestic institutional investors bought shares worth Rs 2,542.49 crore. There was also a slight decline in crude oil prices in the global markets and Brent crude fell 0.27% to $ 62.33 per barrel.
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