Indian equities fell sharply on Tuesday as selling pressure across the banking, finance, IT, energy, and auto sectors led to a sharp decline in benchmarks. The BSE Sensex fell over 1,000 points, while the NSE Nifty fell below the crucial 24,400 points. As of 12:11 p.m., the Sensex was down 1,005 points (1.23 per cent) at 80,744 and the Nifty was down 286 points (1.16 per cent) at 24,382. This sharp fall wiped out investment funds to the tune of Rs 2.9 lakh crore.
Global cues, US Fed meeting impact
Markets slowed globally as outcomes from the US were anticipated. The outcome of the Federal Reserve’s two-day meeting starting Tuesday. Analysts said the market has already priced in a possible 25 basis point (bps) rate cut. However, a hawkish attitude or unexpected comments from the Fed chairman could affect sentiment significantly.
Market fall: Key highlights
1. Investor wealth erosion: The total market capitalisation of BSE-listed firms fell by Rs 2.97 lakh crore to Rs 457.08 lakh crore, compared to Rs 460.06 lakh crore in the previous session. Frontline stocks like HDFC Bank, Bharti Airtel, Reliance Industries (RIL), ICICI Bank, Larsen & Toubro (L&T), Tata Consultancy Services (TCS), and Mahindra & Mahindra were among the major drags.
2. Stocks at 52-week lows: Fifteen stocks hit their 52-week lows, including notable names like Prince Pipes & Fittings and Tata Technologies. In contrast, 250 stocks touched their 52-week highs, highlighting selective buying in specific counters.
3. Broader market trends: Out of 4,002 traded stocks, 2,194 ended in the red, while 1,685 advanced and 123 remained unchanged, reflecting a broad-based decline.
4. Sectoral impact: Nifty Bank, Nifty Financial Services, Nifty Auto, Nifty IT, and Nifty Oil & Gas led the losses, with 11 of NSE’s 16 sub-indices ending lower.
5. Stock-specific movements:
- Losers: Shares of Shriram Finance, HEG Ltd., Blue Star, Pidilite Industries, Patanjali Foods, and Bharti Airtel fell up to 3.36%.
- Gainers: On the positive side, stocks such as Quess Corp, CSB Bank, Piramal Pharma, Rashtriya Chemicals, Craftsman Automation, Suzlon Energy, and Mazagon Dock Shipbuilders saw gains of up to 8.7%.
Top drags on sensex
HDFC Bank, Bharti Airtel, and Reliance Industries alone contributed to a 331-point decline in the Sensex. ICICI Bank, L&T, TCS, and Mahindra & Mahindra added to the pressure.
Outlook ahead
Analysts suggested that markets will remain volatile ahead of the US Fed decision and commentary, which could dictate global trends. Investors are advised to stay cautious amid rising uncertainties and weak global cues.
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