Indian Stock Market
The BSE Sensex fell more than 426 points below its record level on Wednesday due to heavy selling in the Indian stock market. After the recent rally, there was profit booking all around in the market, due to which the shares of metal, automobile and IT companies suffered huge losses.
According to traders, the domestic market was also affected by the uncertainty over the reduction in policy rates in the US. In a volatile trade, the 30-share BSE Sensex closed down 426.87 points or 0.53 per cent at 79,924.77 points.
Profit booking in domestic market
In early trade, it had reached its highest level of 80,481.36 points with a gain of 129.72 points. Later it plunged 915.88 points to 79,435.76 points. The National Stock Exchange’s Nifty also closed down 108.75 points or 0.45 per cent at 24,324.45 points. Vinod Nair, Head of Research, Geojit Financial Services, said that there was profit booking in the domestic market before the start of the quarterly results of the companies. Expectations about financial results are low due to slowdown in sales growth due to sluggishness in the global economy and margins being affected by high inflation.
Budget impact
He said that apart from this, the market is also temporarily risk averse due to high expectations about the budget. The impact of budget expectations is visible in the rise of the last one month. Mahindra & Mahindra fell six percent in Sensex stocks. The company has reduced the prices of some variants of SUV XUV700 model to boost demand. Apart from this, shares of Tata Steel, Tata Consultancy Services, HCL Technologies, State Bank of India, JSW Steel, Tata Motors and Kotak Mahindra Bank also remained in loss.
Top gainers
On the other hand, Asian Paints, NTPC, Power Grid, Adani Ports and Bharti Airtel are among the stocks that remained in profit. Religare Broking Ltd. Senior Vice President (Research) Ajit Mishra said that the sentiment has weakened a bit due to the fall in the index during trading. But strength in some sectors limited the losses. The BSE SmallCaps index, representing shares of small companies, fell by 0.69 per cent, while the index of shares of mid-cap companies fell by 0.19 per cent.
Meanwhile, global oil benchmark Brent crude rose 0.24 percent to $ 84.86 per barrel. According to stock market data, foreign institutional investors bought shares worth Rs 314.46 crore on Tuesday. The BSE Sensex rose 391.26 points to a record high of 80,351.64 on Tuesday and the NSE Nifty rose 112.65 points to a new peak of 24,433.20.