HomeEconomyStock Market Updates: Sensex Ends 523 pts Lower, Nifty Near 19,100; Welspun...

Stock Market Updates: Sensex Ends 523 pts Lower, Nifty Near 19,100; Welspun Soars 9% – News18

Sensex Today: Equity markets crumbled for a fifth day on Wednesday as broad-based selling hurt sentiment. The S&P BSE Sensex dropped 523 points to end at 64,049, while the Nifty50 fell 160 points to close at 19,122.

The indices hit intraday lows of 63,912 and 19,074 levels, respectively. The S&P BSE Sensex has lost nearly 3 per cent thus far in October, and down almost 6 per cent from its 52-week high level of 67927.23 hit on September 15, 2023.

Cipla, Apollo Hospitals, NTPC, Adani Enterprises, SBI Life, Divis Labs, Tech M, Bharti Airtel, ICICI Bank, HDFC Life, Tata Motors, Infosys, IndusInd Bank, Eicher Motors, L&T, Bajaj Finance. Grasim, and Bajaj Auto fell over 1 per cent each.

In the broader market, the BSE MidCap index slipped 0.52 per cent and the BSE SmallCap 0.77 per cent as against the frontline indices’ 0.8 per cent decline.

Among sectors, the Nifty Metal and PSU Bank indices were the only gainers, rising up to 0.1 per cent. The Nifty Realty, IT, and Media indices, meanwhile, fell over 1 per cent each.

All sectoral indices traded in the green, with Nifty Metal craking the most, down over 2%. Realty index also tanked over 1.5% in the afternoon session. Meanwhile, the fall in midcap and smallcap indices was in line with the benchmark index.

Santosh Meena, Head of Research, Swastika Investmart Ltd, said: “The Indian market is currently undergoing a notable correction, and even the previously outperforming broader market segments are now witnessing profit-taking, which many had anticipated. This correction is considered a routine occurrence within the framework of a structural bull market, characterized by a significant retreat following a period of exuberance in midcap, smallcap, and SME sectors. This adjustment can be attributed, in part, to fluctuations in US bond yields and concerns surrounding the situation in Iraq, though these factors are largely seen as convenient excuses for the market’s pullback.”

“Nonetheless, the market appears to be entering a phase of consolidation in preparation for the pre-election rally. Historically, Indian markets tend to initiate their pre-election upswings approximately six months prior to the election outcome. As such, it’s reasonable to anticipate the beginning of a pre-election rally around the time of Diwali.In terms of market behavior, further correction could be expected, with the Nifty potentially testing its 200-day moving average (DMA) at around 18,800. This could present an attractive buying opportunity for investors looking to participate in the anticipated pre-election rally. It’s important for investors to remain composed and avoid panicking during these market fluctuations. Instead, they should be prepared with a list of high-quality stocks to capitalize on this dip,” he added.

Global Cues

In the US, the S&P 500 gained 0.73 per cent, the Dow was up 0.62 per cent and the Nasdaq added 0.93 per cent on Tuesday as 10-year treasury yield eased a bit from its record high.

Asian markets were mixed this morning with Nikkei, Hang Seng rising 1 per cent and 2 per cent, respectively. Strait times and Kospi fell up to 0.4 per cent. CSI 300 in China was up 1 per cent.

Crude oil eased to $88 per barrel after dipping over 2 per cent on Monday as economic data in the Euro zone and Britain came weaker than expected, raising worries about a slowdown and demand slump for oil.

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