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Business News/ Markets / Stock Markets/  Nifty 50 to Sensex: Why Indian stock market was down today — explained with 5 reasons

Nifty 50 to Sensex: Why Indian stock market was down today — explained with 5 reasons

Stock market today: US Fed's push back against interest rate cut, disappointing Chinese economic data, tension in the Middle East, etc. are some of the major reasons for weakness on Dalal Street, say experts

Stock market today: Nifty 50 index has broken its crucial support placed at 21,500 and now it may go up to 21,000 levels in near term.Premium
Stock market today: Nifty 50 index has broken its crucial support placed at 21,500 and now it may go up to 21,000 levels in near term.

Stock market today: Following weak global cues, the Indian stock market extended its loss for the third straight session on Thursday. After logging the highest intraday loss since 13th June 2022 on Wednesday, the Nifty 50 index today opened lower.

On Thursday, Nifty 50 opened at 21,414.20 against the previous close of 21,571.95 and hit its intraday low of 21,285.55. The index finally closed 110 points, or 0.51 per cent, lower at 21,462.25.

Sensex opened at 71,018.86 against the previous close of 71,500.76 and fell about 835 points to hit the intraday low of 70,665.50. The index eventually closed 314 points, or 0.44 per cent, lower at 71,186.86.

Also read: Stock market today: Nifty 50, Sensex fall for third consecutive session 

The Nifty Bank index opened lower and went on to hit an intraday low of 45,430 level. 

In the last three straight sessions, Nifty 50 index has fallen from 22,097 level to 21,406 mark, logging 691 points loss in this time. In the last three days, the BSE Sensex has crashed from 73,128 to 70,891 level, registering 2,237 poins loss in this time whereas Bank Nifty index has tanked 2,728 poins in the last three straight sessions.

According to stock market experts, Indian stocks are falling due to five major reasons — hawkish US Fed, disappointing Chinese economic data, rise in the US bond yield, Middle East tension, and overbought condition in the Indian stock market. They said that the above-mentioned 5 reasons are hitting stock markets globally.

Why share market is falling today?

On why the Indian stock market has been falling for the last three straight sessions, Deepak Jasani, Head of Retail Research, HDFC Securities said, “The global market including Dalal Street is grappled with US Fed's push back against interest rate cut expectations, investors reacted to mixed Chinese data and kept a wary eye on the latest developments in the Middle East."

Also Read: HDFC Bank share price extends decline; plunges over 10% in two days

On other reasons that are pulling down Dalal Street sentiments, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Rise in US bond yield in recent sessions and overbought condition at Indian stock market are some other reasons that have triggered profit booking in the global stock market."

Deepak Jasani of HDFC Securities said that on a downward breach of 21449, the Nifty 50 index could head around the 21,000 mark over the next few days, while 21,851 could act as a resistance.

Stock market strategy

On suggestion to stock market investors, Saurabh Jain, Equity Head, Research- Fundamentals at SMC Global Securities said, “Timing the market is challenging, but in times of a market downturn, it may be prudent to gradually accumulate positions. Although some stocks may experience short-term declines, if the fundamentals of a sector and specific stocks remain strong, it could be an opportunity to strengthen your portfolio. Investors should consider buying fundamentally robust stocks and sectors, focusing on the long-term perspective rather than short-term market fluctuations."

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Published: 18 Jan 2024, 09:34 AM IST
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