Stock market today falls for 8th straight day, Nifty below Budget day low
The Indian stock market ended in the red for the eight day in a row with Nifty breaking below the Budget day low, key support of 17,353. At close, Sensex was down 326.23 points, or 0.55%, at 58,962.12, and Nifty ended the day at 17,303.95, down 88.75 points, or 0.51%.
In the last eight sessions, Sensex has dropped 3.8% while the Nifty has fallen 4%. Investors have lost about ₹10 lakh crore in this period.
The market breadth on Tuesday was also in favour of declines with advance-decline ratio at 17:33.
“Global investors’ interest in the equity market is weakening due to the slowdown in the economy, led by high inflation and contractionary monetary policy. Inflows are being diverted to safe assets, and corporate earnings growth is dropping, affecting the performance of the stock market and demanding downgrade in valuation. The double whammy for India is that it is expensive compared to other EMs, resulting in underperformance among the global market,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nifty’s sectoral indices closed mixed with pharma index seeing maximum losses, down 1.3%. On the other hand, media index gained the most.
“Markets extended losses for yet another session and settled with a cut of nearly half a percent. The tone was positive initially but selling resumed as the session progressed. Consequently, Nifty finally settled at 17303.95 level. On the sectoral front, most sectors traded under pressure however selective buying in auto, and realty pack combined with rebound on broader front kept the the traders busy,” said Ajit Mishra, VP – Technical Research, Religare Broking.
“Markets are not seeing respite despite the oversold positions however the pace of decline has subsided in the recent sessions. We expect Nifty to respect 17100-17200 zone thus possibility of consolidation is high. Meanwhile, focus on stock-specific opportunities based on sectoral trend and limit leveraged positions.”
Tata Steel, RIL and Bajaj FinServ were the biggest losers on the Sensex, on the other hand, Asian Paints, M&M and PowerGrid were the biggest gainers.
Mid and smallcaps, however, outperformed, as the BSE Midcap index ended with a gain of 0.60 percent while the Smallcap inex rose 0.40 percent.
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