Equity indices in India traded low as it opens on Wednesday driven by weak global events from US and Asian market.
As the market opens, Sensex had decended by 533 points at 81998 marking a contraction of 0.67 percent. On the other, registering relatively higher depression, Nifty was noted at 25,099 down by 180 points and 0,70 percent at 9:43AM.
Banking and IT stocks led the decline, with Nifty Bank down by 416 points or 0.81 percent at 51,272, and Nifty IT falling 648 points or 1.50 percent to 42,202. Other sectors, including auto, PSU banks, financial services, metals, energy, infrastructure, and realty, also experienced significant losses.
In the Sensex pack, major losers included Wipro, JSW, Infosys, L&T, Tata Steel, SBI, Axis Bank, NTPC, and M&M.
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Across Asia, most markets traded in the red, with declines observed in Tokyo, Shanghai, Hong Kong, and Seoul. Only the Jakarta markets showed positive movement. On Tuesday, US markets also closed in the red.
Market experts noted that September has historically been a weak month for global markets over the past four years, and early trends suggest this pattern may continue this year. Growth concerns triggered a selloff in US markets yesterday.
Despite the downturn, experts believe that the “buy-on-dips” strategy, earlier proven effective in the current bull run, might come into play again. Retail investors waiting for a correction are likely to buy on dips, though it remains uncertain if this trend will sustain.
Sameet Chavan, Head of Research at Angel One, stated that Nifty’s key support lies at 25,200, with a solid support zone between 25,100-25,000. On the upside, intermediate resistance will likely be at 25,350-25,400, followed by a strong hurdle at 25,500.
