Indian equity markets faced a steep decline on Monday morning, influenced by negative signals from Asian counterparts.
By 9:42 AM, the Sensex had plummeted 1,509 points, or 1.86%, settling at 79,460, while the Nifty dropped 465 points, or 1.88%, to 24,252.
The overall market sentiment remains bearish.
On the National Stock Exchange (NSE), a mere 110 shares were trading in the green, while a staggering 2,126 shares were in the red.
Smaller and mid-sized stocks also faced significant selling pressure.
The Nifty Midcap 100 index tumbled 1,677 points, or 2.90%, to 56,236, and the Nifty Smallcap 100 index fell 598 points, or 3.18%, to 18,202.
Almost all sectoral indices were trading lower, with significant losses seen in the Auto, IT, PSU Bank, Financial Services, Realty, Energy, and Infrastructure sectors.
“The global market is experiencing sharp selling pressure due to fears of an impending recession in the United States,” commented Hardik Matalia, Research Analyst at Choice Broking.
He further added, “After the gap-down opening, Nifty might find support levels at 24,300, 24,250, and 24,200. Resistance levels are likely around 24,500, followed by 25,600 and 25,650.”
Within the Sensex pack, the top losers included Tata Motors, Maruti Suzuki, JSW Steel, Tata Steel, Power Grid, and Reliance.
Conversely, Sun Pharma, HUL, Asian Paints, and Nestle managed to stay in the green.
Another market expert emphasized the fragility of the global stock rally, noting that it has been primarily driven by expectations of a soft landing for the US economy.
However, this optimism is now under threat due to the decline in US job creation in July and the sharp rise in the US unemployment rate to 4.3%.
Additionally, geopolitical tensions in the Middle East are exacerbating the situation.
On 2 August, foreign institutional investors (FIIs) offloaded equities worth Rs 3,310 crore, while domestic institutional investors (DIIs) stepped in to buy equities totaling Rs 2,965 crore.
As the markets grapple with these global and domestic pressures, investors remain cautious, closely monitoring developments to gauge future trends.
Also Read: CBDT’s Central Action Plan 2024-2025: An In-Depth Overview
These gifts to world leaders reflect the diverse traditions, arts, and crafts of India, emphasizing…
Dr Singh stressed the importance of reaching a GDP of $15 trillion by 2047 to…
Criminal lawyer Vijay Aggarwal weighed in on the charges against Adani. He believes the indictment…
After a major sell-off earlier in the week, Adani Group stocks, led by Ambuja Cements…
A sharp rally in financial stocks and encouraging US labor market data fueled the uptrend.…
PM Narendra Modi held 31 bilateral meetings and discussions during his visit to Nigeria, Brazil,…