The Nifty 50 declined most in financial services, oil and gas, and auto companies, while IT firms defied the trend and offered a rare bit of support in the midst of the overall market downturn
On October 4 domestic market indices, Sensex and Nifty 50, began the day flat but rapidly fell as investors became more wary of the Middle East’s growing tensions ahead of the pivotal US payrolls report in September. While IT stocks defied the trend and offered a rare glimpse of resilience despite the overall market downturn, financial services, oil & gas, and auto sectors led the Nifty’s loss.
The Sensex had down 236 points, or 0.3 percent, to 82,260 at 9:18 AM, while the Nifty had dropped 78 points, or 0.3 percent, to 25,172. There were roughly 1,381 advances, 1,108 declines, and 111 stable shares.
“Indian markets have been suffering dramatic falls followed by fast recovery. But there’s a new degree of doubt in the market because of the geopolitical concerns that exist today,” stated WealthMills Securities Director of Equity Strategy Kranthi Bathini.
For the sixth straight session, Nifty Bank lost ground, falling 0.3 percent as important stocks such as ICICI Bank and Kotak Mahindra underperformed. Nifty Auto under pressure as well, falling 0.7 percent as the industry was greatly affected by valuation concerns. For the fourth session in a row, worries over possible Israeli strikes on Iranian oil installations amid escalating tensions in the Middle East kept pressure on oil and gas stocks.
Twelve of the thirteen sectoral indicators were negative. The only exception of the day was the Nifty IT, which increased by 0.3 percent under the guidance of increases in TCS, Coforge, and HCLTech. JPMorgan maintained its ‘Overweight’ rating on Coforge and increased its target price from Rs 6,900 to Rs 9,300 in its most recent research report.
According to Accenture’s data thus far, IT is expected to be neutral to positive with no significant negative surprises. But, given global economic worries and geopolitical difficulties, volatility will remain high in industries like IT, banking, and financial services,” Bathini told
Nifty 50 Down Today
The BSE Midcap and Smallcap indices underperformed the benchmarks in the wider market, falling more than 1% apiece. In the meantime, the fear gauge, or India VIX, rose to 13.7, roughly 4% higher than before.
According to Anand James, Chief Market Strategist at Geojit Financial Services, Nifty may halt above 25,000 and then see a quick rebound. Although Nifty’s upward potential appears to be limited around 25,460, he stated there is a possibility it may reach 25,690. “Alternatively, inability to float above 25300 could quickly pave way for 25,000 or even 24,600,” he stated.
The Nifty 50’s largest laggards, dropping 1-3 percent, were Cipla, Hero MotoCorp, Trent, Bajaj Finance, and BPCL. Conversely, the top gainers were Titan, ONGC, SBI Life, Tata Motors, IndusInd Bank, and ONGC, all of which increased by 1-2 percent.
October began erratically, with Indian benchmarks plunging more than 2 percent in the previous trading session following Iran’s recent missile strike on Israel. When Israel launched a ground incursion in Lebanon, the situation worsened. Fearing that Israel would retaliate against Iran’s oil industry for the missile attack, Brent Crude futures have risen more than 8% in October to about $78 per barrel in response to these geopolitical developments.
Concerns of decreased trading volumes have been expressed domestically in response to new regulations for the F&O segment that the Securities and Exchange Board of India (SEBI) imposed. Aside from that, it is anticipated that FIIs will continue to sell Indian stocks and direct their capital to the cheaper Chinese market.
Analysts believe that despite short-term worries, the long-term trend in Indian markets is still in place and that long-term investors should take advantage of this decline to purchase shares.
Amidst overnight losses on Wall Street, the morning activity on Asia-Pacific markets was uneven. On October 8, mainland Chinese markets will reopen.
Read More: The Future of the Stock Market: Predictions and Trends
FAQs
How many points Nifty is down today?
The BSE Sensex was down 410 points
