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Taking Stock: Sensex, Nifty record biggest weekly fall since June 2022

Submitted by admin on October 7th, 2024

Indian equity markets ended the highly volatile session on October 4 on a negative note for the fourth straight session amid further escalation of geopolitical tensions.

At close, Sensex was down 808.65 points or 0.98 percent at 81,688.45, and the Nifty was down 200.30 points or 0.79 percent at 25,049.80.

The BSE Sensex and Nifty50 each fell 4.5% for the week, the biggest weekly decline since June 2022. The deepening Middle East conflict further heightened fears that crude supplies from the world’s largest oil-producing region could be disrupted. That has driven up crude prices, which hurts net importers like India.

While Nifty made a bad start in the initial hours of the day, markets recovered during the rest of the trade and Nifty touched almost 25,500 in the first half. However, profit booking at the higher level dragged it down to below 25,000 on intraday basis in the second half of the trade.

The investors’ wealth eroded by around Rs 3.99 lakh crore in today’s fall as the market capitalisation of BSE-listed companies slipped to Rs 461.26 lakh crore, from Rs 465.25 lakh crore in the previous session.

NSE losers: M&M, Bajaj Finance, Nestle India, BPCL, Asian Paints

Gainers: Infosys, ONGC, Tata Motors, Wipro, HDFC Life.

Except PSU Bank and IT, all sectoral indices ended in red on Monday, with auto, FMCG, realty, power, media, telecom, oil & gas index down 1-2%.

BSE Midcap and Smallcap indices lost nearly a percent each.

Close to 200 stocks registered a 52-week high on the BSE. The list includes, BASF India, Coforge, Colgate Palmolive, Dr Lal PathLab, Info Edge, JSW Steel, Jubilant Ingrevia, Lloyds Metals, Metropolis Healthcare, Polycab India, Whirlpool of India and many more

On the other hand, CreditAccess Grameen, RBL Bank, Vodafone Idea, Easy Trip Planners, Equitas Bank, Ujjivan Small Finance Bank, among others touched new lows.

October 7

Ajit Mishra, SVP – Research, Religare Broking

Markets remained under pressure, continued extending the corrective phase as markets lost more than a percent. After a weak opening, Nifty staged a good recovery in the first half, but spurt selling in heavyweights pushed the index marginally below the 25,000 mark. All major sectoral indices, barring IT, gave in under the pressure, with realty, auto, and FMCG being the major casualties. Broader indices too weakened, shedding nearly a percent each.

The ongoing geopolitical tensions have pushed up crude prices and doused the hopes for rate cuts by the RBI in the upcoming policy meet. The market further is stretched with visible selling by foreign investors. Although this recent slip may give a temporary pause or a slight bounce back, the bias on Nifty would remain negative unless it decisively breaks above the 25,600 levels.

The IT, metal, and pharma sectors are resilient, while the rest of the sector is under selling pressure in rallies. The traders must make appropriate adjustments to positions so that it becomes a hedged approach.

Domestic Equities continued their downward journey with Nifty breaching 25k in intra-day. Siddhartha Khemka, Head – Research, Wealth Management, Motilal Oswal Financial Services. The index finally settled near the day’s low with a loss of 200 points (-0.8%) at 25050 levels. Broader market too saw profit booking and was down 1%. All sectors ended in the red bar except for IT & PSU Bank. Realty, FMCG, and Auto dipped 1-2%. Profit booking took place in the market on account of increased volatility index, selling of FIIs, and weak global cues. The Nifty shed 1310 points (-5.2%) after making a fresh high of 26277 last week.

Markets may consolidate during the next week with caution because there are feared West Asia tensions on the rise. Next week, the start of the earnings season will continue stock-specific action. The RBI policy meeting next week will be in focus, though rate cuts are not in contemplation. Commentary will hold great importance nonetheless.