The Sensex slid 451 points to 78,248.13, and the Nifty 50 sank 169 points to 23,644.90. Amid negative global indications, banking equities led losses, with the Nifty Bank index declining 0.70%. The BSE Smallcap index dropped 0.47% while the Midcap index increased marginally.
Today's stock market:The flagship index of the Indian stock market, the Nifty 50, ended Monday, December 30, over 1% lower, ending its two-day winning streak. The losses were driven by major banks, such as HDFC Bank and ICICI Bank, in the face of negative global cues. With the US dollar strengthening and bond yields rising, global stock market optimism seems fragile as the year comes to an end.Because of the ongoing uncertainty surrounding Donald Trump's tariff proposals, investors are keeping their bets on riskier stocks.On January 20, Donald Trump, the US president-elect, will take office. Experts predict that Trump's trade policies might have a big effect on the dollar-rupee exchange rate, foreign investment in India, and the US Federal Reserve's efforts to control inflation.
The Sensex ended the day at 78,248.13, down 451 points, or 0.57 percent, while the Nifty 50 closed at 23,644.90, down 169 points, or 0.71 percent.
The Nifty 50 index saw up to 38 equities finish lower than their starting price.
The top Nifty index drags at the finish were shares of HDFC Bank, ICICI Bank, Infosys, Reliance Industries, and Tata Motors.
The BSE Smallcap index dropped 0.47 percent, while the Midcap index increased 0.13 percent.
"Markets lost steam in the second half and plummeted after that as investors reduced their equities holdings due to a combination of weak Asian and European cues, anxiety over the declining rupee, and fresh foreign capital flows. With US 10-year bond yields hitting 4.61%, the highest level in seven months, we believe rising US bond yields will be the largest negative driver in the future," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Today's sectoral indexes
Nifty Media (down 1.87 percent), Realty (down 1.54 percent), Auto (down 1.43%), and Metal (down 1.27%) were among the sectoral indices that had losses of up to 2%.
Every financial and banking index experienced a decline. The Nifty Bank index fell 0.70%.whereas the Private Bank and PSU Bank indices experienced declines of 0.63 and 1.18 percent, respectively. The Nifty Financial Services index experienced an almost one percent decline.
The Nifty Healthcare and Pharma indices, on the other hand, increased by more than 1%.
The market was nonetheless hampered by the prevailing muted attitude brought on by FII sales and a rising dollar. As investors continued to place bets on defensive equities to ward off short-term volatility, IT and pharmaceuticals saw gains. The market as a whole is being impacted by worries over excessive valuation, according to Vinod Nair, Head of Research at Geojit Financial Services.
Outlook for the Nifty 50
Religare Broking's SVP of research, Ajit Mishra, noted that the Nifty 50 is having difficulty staying above its long-term support zone.the exponential moving average (DEMA) for 200 days.
According to Mishra, today's drop suggests that there may be further downside ahead, and a clear break below 23,500 will likely confirm this trend, with 23,250 being the next target.
Rupak De, Senior Technical Analyst at LKP Securities, claims that the index has fallen below its most recent consolidation on the daily chart. The fact that it is still trading below the 200-DMA suggests that sentiment is weak.
"With possible downside risks, the short-term prognosis is still bleak overall. Support is located at 23,400 on the lower end, and short-term resistance is anticipated at 23,870," De said.
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