Mumbai. The two-day rally in the local stock market came to an end on Wednesday and the BSE Sensex fell by 427 points. The market came down due to selling in bank and financial stocks amid weak trend in global markets. According to traders, market sentiment was affected due to weak quarterly results of companies and continued capital withdrawal by foreign institutional investors.
BSE Sensex fell 426.85 points or 0.53 percent and closed at 79,942.18 points. During trading, the index reached a high of 80,435.61 points and reached a low of 79,821.99 points. National Stock Exchange’s Nifty also closed at 24,340.85 points with a decline of 126 points or 0.51 percent. Traders said softening of FII selling and some improvement in valuations of domestic stocks are positive signs for the domestic market.
Among the thirty Sensex stocks, Infosys, ICICI Bank, Kotak Mahindra Bank, Mahindra & Mahindra, State Bank of India, HCL Technologies, Axis Bank, NTPC and HDFC Bank were among the losers. Contrary to this trend, shares of Maruti, IndusInd Bank, Adani Ports, ITC and UltraTech Cement closed with profits. According to stock market data, foreign institutional investors sold shares worth Rs 548.69 crore on Tuesday.
VK Vijayakumar, chief investment strategist, Geojit Financial Services, said, “In the near future, the market will be influenced by two factors… positive and negative. The positive thing is the rapid decline in FII selling and it stood at Rs 548 crore on Tuesday. This is a sign that the approach of ‘sell in India and buy in China’ is going to end.”
He said, “The market is expected to gain momentum in the near future due to continued buying by domestic institutional investors (DIIs) and retail investors and softening of selling by FIIs. Festivals are also expected to have a positive impact on the market. “However, the bullish trend is unlikely to last long as the financial results of companies in the second quarter indicate that 2024-25 will be soft for them.” BSE Smallcap index related to shares of small companies jumped 1.54 percent while Midcap index related to medium companies rose 0.04 percent.
Deepak Jasani, head of retail research at HDFC Securities, said, “Global stock markets came under pressure on Wednesday as investors adopted a cautious approach ahead of the US Federal Reserve’s decision, US elections and October jobs report.” In other markets of Asia, South Korea’s Kospi, China’s Shanghai Composite and Hong Kong’s Hang Seng were in loss while Japan’s Nikkei remained in the positive zone.
There was a declining trend in the major markets of Europe in afternoon trading. There was a mixed trend in the American markets on Tuesday.
Global oil standard Brent crude rose 0.63 percent to $ 71.57 per barrel. BSE Sensex had gained 363.99 points on Tuesday while NSE Nifty had gained 127.70 points.