Indian stock markets fell for the sixth straight session today, as worries over the financial sector and slowing economic growth continued to hurt sentiment. The Sensex today ended 141 points lower at 37,531 while the broader NSE Nifty closed down 0.43% at 11,126.40. In six days, the Sensex suffered a loss of 1,457 points or 3.7%, wiping out over ₹6 lakh crore of investor wealth.
Pharma, auto and IT stocks led the decline today. Aurobindo Pharma Ltd plunged 19% after the US Food and Drug Administration's inspection of the company's Telangana plant ended with seven observations. "We believe none of the observations are related to data integrity. The company is confident of addressing these issues within the stipulated timeline," Aurobindo Pharma said.
The RBI on Friday cut its real GDP growth forecast for 2019-20 to 6.1% from a prior projection of 6.9%.
"Markets traded dull and lost nearly half a percent, in continuation of a prevailing corrective phase. The benchmark index remained range-bound for the most part of the day and selling pressure in the last hour pushed it to the day’s low," said Ajit Mishra vice president of research at Religare Broking.
"Going ahead, we may see some bounce due to oversold positions in the index but the bias would remain on the negative side. We reiterate our cautious view and suggest preferring hedged trades. In the absence of any major event, earnings and global cues will dictate the market trend in days to come," he added.
According to Rohit Singre, senior technical analyst at LKP Securities, if Nifty manages to hold 11,080-11,060 zone, the Nifty could see a bounce towards 11250 zone in near term.
The crucial Nifty Bank index managed to ended flat today, ending a five-session losing run. The Nifty Bank index managed to close 0.13% higher at 27,767. "Immediate support for Nifty Bank is coming near 27,550-27,350 and resistance is coming near 27950-28100 zone," he added.
Foreigners have sold India equities worth ₹2800 crore in three sessions from October 1 to October 4.
Shrikant S. Chouhan, senior vice-president at Kotak Securities said: "The market is not having enough strength to sustain at higher levels. By pushing Nifty below the level of 11,140, bears have disturbed the bullish momentum. Nifty is heading for the levels of minimum 11,050 and maximum could be 10,850. On the higher side 11,240 would be hurdle for the index."