Indian Stock Market Extends Losses for Sixth Consecutive Session Amid Sectoral Weakness
The Indian stock market continued its downward trend on Thursday, marking its sixth consecutive session of losses. The broader market witnessed a broad-based sell-off, with significant declines in the PSU bank, pharma, FMCG, and metal sectors.
Mumbai: The Indian stock market continued its downward trend on Thursday, marking its sixth consecutive session of losses. The broader market witnessed a broad-based sell-off, with significant declines in the PSU bank, pharma, FMCG, and metal sectors. This ongoing decline is largely attributed to global economic pressures, a stronger US dollar, and persistent foreign investor selling.
Table of Contents
Sensex and Nifty Extend Losses
The Sensex closed at 77,580.31, down by 110.64 points or 0.14%, while the Nifty finished at 23,532.70, experiencing a marginal drop of 26.35 points or 0.11%. Despite the overall weakness in the market, there was some positive movement in the Nifty Bank, which rose 91.20 points or 0.18%, closing at 50,179.55.
Also Read: RIL mcap decreases by Rs 74,000 crore: SBI, TCS, Infosys biggest gainers
Meanwhile, the Nifty Midcap 100 index saw a gain of 242.25 points, or 0.45%, to close at 54,043.10, while the Nifty Small Cap 100 index rose by 142.15 points, or 0.81%, to end at 17,601.05.
Sectoral Performance: Mixed Trends
While certain sectors showed resilience, including auto, IT, financial services, realty, media, private banks, and infrastructure, sectors such as PSU banks, pharma, FMCG, and metal remained under pressure.
Among the Sensex stocks, the top gainers included Kotak Mahindra Bank, Tech Mahindra, M&M, HDFC Bank, Asian Paints, and JSW Steel. On the flip side, Hindustan Unilever, NTPC, Nestle India, IndusInd Bank, Power Grid, and Tata Motors were the biggest losers.
Market Breadth: Selling Pressure Continues
On the Bombay Stock Exchange (BSE), 2,159 stocks advanced, while 1,798 stocks declined. Meanwhile, 93 stocks remained unchanged. The continued selling pressure suggests that investors are cautious amid global market uncertainties and local economic challenges.
Global Economic Pressures and Domestic Outlook
Market experts noted that the Sensex and Nifty’s prolonged losses are largely due to global macroeconomic factors, including a strengthening US dollar and rising bond yields. As of Thursday, the US Dollar Index stood at 106.61, and the US 10-year bond yield reached 4.48%, intensifying the headwinds for emerging market equities like India.
Additionally, the Indian Rupee continued to weaken, touching a historic low of 84.40 against the dollar, further contributing to the negative sentiment. Vikram Kasat, of PL Capital, mentioned that the combination of a strong dollar, rising bond yields, and the depreciating rupee is putting significant pressure on Indian equities.
Looking Ahead: Domestic Business Data in Focus
Despite the prevailing market negativity, experts are optimistic about a potential rebound, pointing to expectations of improved domestic economic data and government spending. With national and state elections recently concluded, there is hope that government expenditure will pick up in the coming months, providing a boost to the economy and the stock market.
Key Takeaways:
- Sixth Consecutive Session of Losses: The Indian stock market continues to face selling pressure, with the Sensex and Nifty both closing in the red for six consecutive sessions.
- Sectoral Weakness: PSU banks, pharma, FMCG, and metal sectors saw significant declines, while auto, IT, and private banks showed resilience.
- Global Headwinds: A stronger US dollar, rising bond yields, and a depreciating rupee are contributing to the market’s struggles.
- Market Outlook: Experts anticipate a potential recovery in the market, driven by improved domestic business data and an uptick in government spending.
