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The 30-share BSE Sensex fell for the second straight session, nosediving 1,064.12 factors or 1.30% to shut at 80,684.45, slipping under the 81,000 mark.
Traders attributed the decline to sustained overseas capital outflows and a detrimental development in world markets, dampening general sentiment.
Stock Market Updates: GIFT Nifty on the NSE IX was buying and selling 66.5 factors, or 0.27%, decrease at 24,364 on Wednesday, indicating a detrimental opening for Dalal Street.
Equity benchmark indices Sensex and Nifty plunged over 1% on Tuesday, as broad-based promoting gripped the markets amid investor warning forward of the U.S. Federal Reserve’s rate of interest choice.
Traders attributed the decline to sustained overseas capital outflows and a detrimental development in world markets, dampening general sentiment.
The 30-share BSE Sensex fell for the second straight session, nosediving 1,064.12 factors or 1.30% to shut at 80,684.45, slipping under the 81,000 mark. Intraday, it plummeted 1,136.37 factors or 1.39% to the touch 80,612.20.
Similarly, the NSE Nifty shed 332.25 factors or 1.35% to settle at 24,336.
Market breadth mirrored the bearish temper, with 2,442 shares declining, 1,576 advancing, and 89 remaining unchanged on the BSE.
Key Factors at Play
“Pessimism looms throughout all sectors forward of main financial coverage bulletins by the US Fed, Bank of Japan (BoJ), and Bank of England (BoE). While markets anticipate a 25 bps charge reduce from the Fed, the main target stays on hawkish commentary. Meanwhile, the BoJ and BoE are anticipated to keep up their present coverage stance,” mentioned Vinod Nair, Head of Research at Geojit Financial Services.
Adding to the woes, the rupee hit a report low, and a widening commerce deficit additional pressured market sentiment.
Sectoral and Stock Performance
All 30 constituents of the Sensex closed within the pink, with Bharti Airtel, IndusInd Bank, JSW Steel, TCS, Asian Paints, L&T, Reliance Industries, and HDFC Bank among the many greatest laggards.
The BSE midcap index dropped 0.65%, whereas the smallcap index declined 0.52%. Sectoral indices mirrored the broader weak point, with BSE Telecom plunging 2.18%, adopted by steel (1.77%), auto (1.70%), vitality (1.64%), and monetary companies (1.37%).
“The liquidity deficit within the banking system, pushed by advance tax funds and certain greenback gross sales by the RBI to curb rupee volatility, added strain. Banking shares have been among the many high drags, with Bank Nifty ending 1.5% decrease,” famous Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities.
Global Market Sentiment
Asian markets, together with Seoul, Tokyo, Shanghai, and Hong Kong, ended decrease, whereas European shares traded in detrimental territory. On Wall Street, indices posted a blended efficiency on Monday.
“Global considerations heart across the risk that the Fed would possibly sign a slower tempo of charge cuts going ahead, alongside cautious commentary for future coverage conferences,” Vakil added.
Foreign Fund Flows and Oil Prices
Foreign Institutional Investors (FIIs) internet offered equities price ₹278.70 crore on Monday, in response to trade information. Meanwhile, Brent crude costs eased 0.50% to $73.58 per barrel.
IPO Activity and Outlook
Despite market turbulence, major markets remained energetic, with eight IPOs opening this week and key listings, together with One Mobikwik, Vishal Mega Mart, and Sai Lifesciences, scheduled for Wednesday.
“Amid unstable markets, traders are carefully monitoring U.S. retail gross sales information and the Fed’s coverage announcement for steerage on the trajectory of charge cuts. The warning amongst FIIs displays their give attention to world macro traits,” mentioned Siddhartha Khemka, Head of Research at Motilal Oswal Financial Services.
On Monday, the Sensex had closed 384.55 factors decrease at 81,748.57, whereas the Nifty ended 100.05 factors down at 24,668.25.
