BSE Sensex tumbles over 800 points; Nifty50 near 24,200
There was a big drop in the stock market today, Wednesday, for the BSE Sensex and the Nifty50, the Indian equity benchmark indices, when they hit fresh lifetime highs. While BSE Sensex plunged 800 points, the Nifty50 was close to 24,200.
According to Nagaraj Shetti of HDFC Securities, the underlying trend of the market is still positive.
The NSE Nifty50 and S&P BSE Sensex opened at record highs on the back of Maruti Suzuki today, which was further continuation.
“But the gains proved ephemeral as the benchmarks succumbed to overhanging pressure from M&M and banking stocks”.
n ET report says markets were weighed down as US Federal Reserve Chair Jerome Powell did not give a clear signal to the U.S. Congress on the timing of the future interest rate cuts in the United States.
The CME FedWatch Tool showed the probability the Federal Reserve was going to reduce rates by 25 basis points in September, but this was marginally lower than the previous session at 77% to 73%. Expectations for 50 basis points of cuts in 2024 stayed the same.
M&M was the biggest loser among the Sensex stocks, sinking by over 4% in early trade. Other losers in the opening included Axis Bank, Kotak Bank, JSW Steel, IndusInd Bank, and ICICI Bank. On the other side, gainers during the opening with minor upmoves consisted of Maruti, Adani Ports, NTPC, Infosys, and Titan. HDFC Bank has seen a 0.5% reduction in early trade after witnessing a downgrade from BofA to ‘Neutral’ against the ‘Buy’ rating.
Stock Market Today Live : Indian equity benchmark indices BSE Sensex and Nifty50 tumbled in the trade on Wednesday from hitting fresh lifetime highs. While BSE Sensex tanked more than 800 points, Nifty50 was near 24,200. At 10:58 AM, BSE Sensex was trading at 79,648.29, lower by 703 points or 0.88%. Nifty50 quoted 24,222.55, lower by 211 points or 0.86%.
The NSE Nifty50 and S&P BSE Sensex opened at record highs on the back of Maruti Suzuki today, which was further continuation.
“But the gains proved ephemeral as the benchmarks succumbed to overhanging pressure from M&M and banking stocks”.
n ET report says markets were weighed down as US Federal Reserve Chair Jerome Powell did not give a clear signal to the U.S. Congress on the timing of the future interest rate cuts in the United States.
The CME FedWatch Tool showed the probability the Federal Reserve was going to reduce rates by 25 basis points in September, but this was marginally lower than the previous session at 77% to 73%. Expectations for 50 basis points of cuts in 2024 stayed the same.
M&M was the biggest loser among the Sensex stocks, sinking by over 4% in early trade. Other losers in the opening included Axis Bank, Kotak Bank, JSW Steel, IndusInd Bank, and ICICI Bank. On the other side, gainers during the opening with minor upmoves consisted of Maruti, Adani Ports, NTPC, Infosys, and Titan. HDFC Bank has seen a 0.5% reduction in early trade after witnessing a downgrade from BofA to ‘Neutral’ against the ‘Buy’ rating.
In stock news, Delta Corp lost nearly 4%, after standalone net profit for the first quarter ended June 2024 fell by 34% year-on-year. Meanwhile, RVNL advanced 10% as the company received a Letter of Acceptance for a project worth Rs 187.34 crore from Maharashtra Metro Rail Corporation Limited (for Nagpur Metro).
The results of such factors were discussed by experts. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said India is sustaining its bull market owing to the global rally along with sustained retail investor inflow. At the same time, he sees the speculative investment scenario considered as dangerously high levels. Deven Mehata, Research Analyst at Choice Broking, offered support and resistance with 8900 put adding fresh quantity compared to calls.
The global markets rallied on developed beliefs that the Fed was poised to cut interest rates as well, with MSCI’s broadest index of Asia-Pacific shares outside Japan up by 0.09%, about a two-year high. Japan’s Nikkei gained another 0.13%, and the broader Topic index was up over 1%.
FIIs were net buyers of equities worth Rs 314 crore and DIIs bought Rs 1416 crore of equities on July 9.
Oil prices jumped back on Wednesday after a three-day fall, supported by a report showing a decline in U.S. crude and fuel stockpiles, amounting to steady demand and improved hopes of rate cuts. Brent futures rose 21 cents to $84.87 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose 26 cents to $81.67 a barrel. As such, the dropping of the rupee from 83.49 to the dollar opens at 83.49 in early trade on Wednesday. Other currencies showed the dollar index flat, crawling down by 0.03% to 105.1 levels against a basket of six major currencies traded across the world.