Discover the shocking truth behind the recent plummet in the Stock Market today! Dive into expert analysis, uncovering the reasons behind the market chaos and what it means for your investments. Stay informed and safeguard your financial future today!
Sensex and Nifty Decline Amid Market Uncertainty
On Wednesday, both the Sensex and Nifty 50, India’s key equity indices, closed lower amidst a lack of clear market direction. Heavy selling in sectors like PSU banks, realty, auto, oil, and gas contributed to the downward trend. The 30-share BSE Sensex concluded the day at 72,304.88, down by 790.34 points or 1.08%. Similarly, the Nifty 50 closed at 21,951.15, marking a decline of 247.20 points or 1.11%.
In the broader market scenario, the Nifty Small Cap 100 witnessed a drop of 1.87%, while the Nifty Midcap 100 index fell by 1.94%. This indicates a widespread downturn across various market segments.
Analysts attribute the decline in Stock Market today to several factors. Firstly, investors may have been prompted to book profits following substantial gains, leading to short-term selling pressure. Additionally, with the approaching F&O expiry day on February 29th, traders’ rollover of holdings might have induced volatility in the market. Notably, over 90 stocks traded lower during Wednesday’s session, particularly affecting the Nifty Midcap index.
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Foreign Institutional Investors (FIIs) Selling
The market downturn also reflects substantial selling by Foreign Institutional Investors (FIIs). Month-to-date net sales by FIIs amounted to ₹17,650 crore. In contrast, Domestic Institutional Investors (DIIs) have been net buyers, with net purchases totaling ₹23,782 crore.
Global markets have been grappling with uncertainty amid anticipation of key US economic data, including the second estimate of GDP, PCE, and manufacturing statistics. The impending partial shutdown of the US government on March 1st in the absence of a spending bill further adds to market nervousness.
Global market trends were influenced by turmoil in China’s real estate sector. Reports of Country Garden, a major Chinese property developer, facing a liquidation petition due to financial difficulties added to market uncertainty.
Top Nifty 50 Gainers and Losers
Among the Nifty 50 stocks, only 4 ended in the green at Stock Market today while the rest experienced losses. Hindustan Unilever Ltd, Bharti Airtel Ltd, Infosys Ltd, and Tata Consultancy Services Ltd were among the gainers, while Power Grid Corporation of India Ltd, Bajaj Auto Ltd, Apollo Hospitals Enterprise Ltd, Eicher Motors Ltd, and IndusInd Bank Ltd were among the top losers.
Experts characterize the Stock Market today as bear-dominated, with significant profit booking contributing to the downward trend. Market sentiment remains cautious ahead of key US economic announcements, particularly the US Personal Consumption and Expenditures (PCE) index for January.
From a technical standpoint, the Nifty 50 experienced a sharp correction during the day, dipping below the 22,000 mark. However, it managed to close just above the 21EMA on the daily timeframe. Analysts suggest that a sustained trade above 21,950 could lead to a recovery, while a decline below this level might trigger further correction.
Bhaarat Bulletin’s Shikha Rai, Bimal Dev, and BSE/NSE have contributed to the above report
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