Stock market today: Nifty 50 falls for 3rd session in a row; investors lose nearly ₹5 lakh crore in a day

Major Asian and European markets recorded gains on Tuesday amid renewed hopes of rate cuts by the US Fed, following recent data indicating a cooling off in the US labour market.

Japan’s Nikkei rose 1.54 per cent while Korea’s KOSPI jumped 2.11 per cent. China’s Shanghai Composite Index rose 0.22 per cent.

Among the European peers, the UK’s FTSE rose by over a per cent while Germany’s DAX rose by about a per cent when the Sensex closed.

Investors remained in the selloff mode in the Indian stock market amid persisting concerns over the premium valuation of the market in the absence of fresh triggers.

Heavy selling by foreign portfolio investors (FPIs) ahead of the Lok Sabha election outcome on June 4 is seen as one of the top reasons behind the recent downturn in the Indian stock market. 

Also Read: Stock market today: 5 reasons why stock market is falling ahead of Lok Sabha election outcome

Sensex closed with a loss of 384 points, or 0.52 per cent, at 73,511.85. Shares of ICICI Bank, HDFC Bank, Reliance Industries and Power Grid ended as the top drags on the index.

The Nifty 50 closed 140 points, or 0.62 per cent, lower at 22,302.50 with 34 stocks in the red. It was the third consecutive session of losses for the Nifty 50 index.

Volatility index India VIX rose over 2 per cent to the level of 17.

The midcap and smallcap segments suffered deep cuts. The BSE Midcap index plunged 1.90 per cent while the Smallcap index ended with a loss of 1.65 per cent.

The overall market capitalisation of BSE-listed firms dropped to nearly ₹398.4 lakh crore from ₹403.4 lakh crore in the previous session, making investors lose nearly ₹5 lakh crore in a single session.

Top Nifty 50 gainers today

Shares of Hindustan Unilever (up 5.20 per cent), Tech Mahindra (up 2.52 per cent) and Nestle (up 2.06 per cent) stood valiantly amid the widespread selloff, closing as the top gainers in the Nifty 50 index.

Top Nifty 50 losers today

Shares of Bajaj Auto (down 3.98 per cent), Power Grid (down 3.65 per cent) and ONGC (down 3.07 per cent) ended as the top losers in the Nifty 50 index.

Sectoral indices today

Barring Nifty FMCG (up 2.02 per cent) and IT (up 0.77 per cent), all sectoral indices ended with losses.

Nifty Realty (down 3.49 per cent), Metal (down 2.39 per cent), PSU Bank (down 2.31 per cent), Pharma (down 1.86 per cent) and Auto (down 1.83 per cent) suffered deep losses.

Nifty Bank ended with a loss of 1.25 per cent, while the Private Bank index declined 1.45 per cent.

Expert view on markets

Manish Chowdhury, the head of research at StoxBox said the domestic market is witnessing some profit booking at higher levels ahead of a big event next month in the form of election results outcome. Also, the recent RBI proposal for banks and financial institutions to tighten project financing weighs on market sentiment.

Chowdhury believes that, with a lack of major triggers, markets will be rangebound in the near term. In the ongoing earnings season, stock-specific action is likely to continue.

“We maintain our positive bias on markets and expect it to recover, considering the recent fall in crude oil prices and easing US bond yields,” said Chowdhury.

Vinod Nair, the head of research at Geojit Financial Services pointed out that despite positive global cues, the domestic market continued to consolidate. The domestic market is witnessing profit booking due to various factors, including a low turnout in the ongoing election and premium valuations.

FMCG remained the biggest sectoral gainer in today’s trading session, driven by expectations of improving volume growth from rural areas aided by favourable monsoon expectations. Nair said.

Technical views on Nifty 50

Shrikant Chouhan, the head of equity research at Kotak Securities, underscored that on daily charts the Nifty 50 formed a bearish candle. After a long time, the Nifty/Sensex slipped below the 50-day SMA (simple moving average).

“We believe that the short-term texture of the market is still weak. For the traders now, as long as the market trades below 20-day SMA or 22,450/74,000 the weak sentiment will likely continue. Below the same, the market could retest the level of 22,200-22,100/73,200-73,000. On the other side, above 20-day SMA or 22,450/74,000, the texture could change. Above the same, the market could bounce back to 22,500-22,525/74,300-74,400,” said Chouhan.

Rupak De, a senior technical analyst at LKP Securities observed that the trend has weakened as the index fell below the 21EMA (exponential moving average).

“A head and shoulders pattern is visible on the hourly chart, with the index currently sustaining below the neckline, indicating a bearish formation. Further selling pressure is anticipated, possibly extending towards 21,980-22,000 in the short term, as long as it remains below 22,400,” said De.

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Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 07 May 2024, 03:33 PM IST