Market Sentiment Dives: Sensex and Nifty Plunge from Record HighsMarket Sentiment Dives: Sensex and Nifty Plunge from Record Highs Equity benchmarks Sensex and Nifty witnessed a sharp sell-off on Wednesday, surrendering their recent record highs. Metal, auto, and IT stocks suffered significant losses amidst widespread profit-taking. Uncertainties surrounding the US Federal Reserve’s rate cut decision also weighed on domestic stock markets, traders stated. The 30-share BSE Sensex opened higher, reaching an all-time high of 80,481.36. However, the index swiftly reversed course, shedding 915.88 points (1.13%) to trade at 79,435.76. It eventually closed 426.87 points (0.53%) lower at 79,924.77. NSE Nifty followed suit, touching its peak at 24,461.05 during opening deals. But it gave up all gains, losing 291.4 points (1.19%) to 24,141.80 intraday. The index closed down 108.75 points (0.45%) at 24,324.45. The market capitalization of all BSE-listed companies fell by a staggering Rs 1.22 lakh crore to Rs 4,500,050,9458 crore. “Profit-taking ahead of the earnings season is evident in the Indian market. With a slowdown in revenue growth due to the global economic downturn and margin pressures from inflation, expectations are muted,” said Vinod Nair, Head of Research at Geojit Financial Services. He added that high budget expectations could pose risks to the market, which has already rallied significantly in the past month.
Mumbai: Equity benchmark indices Sensex and Nifty succumbed to heavy selling pressure and fell below record highs on Wednesday, triggering deep losses in metal, auto and IT stocks amid widespread profit-taking after recent gains. Rising uncertainty over the US Federal Reserve’s rate cut also contributed to the weak trend in domestic equities, traders said.
The 30-share BSE Sensex opened 129.72 points higher to hit a new all-time high of 80,481.36. However, the index soon fell 915.88 points or 1.13 percent to trade at 79,435.76. The index eventually closed 426.87 points or 0.53 percent lower at 79,924.77. NSE Nifty also touched its all-time high of 24,461.05 in opening deals but pared all gains and fell 291.4 points or 1.19 percent to 24,141.80 intraday. The index fell 108.75 points or 0.45 percent to close at 24,324.45. The market capitalisation of all companies listed on the BSE fell by Rs 1.22 lakh crore to Rs 4,500,050,9458 crore (Rs 450.05 lakh crore or $ 5.39 trillion).
“The Indian market has been witnessing profit taking ahead of the upcoming earnings season. Expectations are muted given the moderation in revenue growth due to a slowdown in the global economy and consolidation in margins driven by high inflation. Moreover, the market is temporarily at risk of high budget expectations, which seems to have been well priced into the rally seen in the past month,” said Vinod Nair, Head (Research), Geojit Financial Services.
