Sensex, Nifty 50 fall for 5th session in a row; investors lose nearly ₹10 lakh crore in 5 sessions
Stock market today: The Sensex ended at 73,885.60, a loss of 617 points, or 0.83 per cent, while the Nifty 50 closed the day at 22,488.65, down 216 points, or 0.95 per cent.
Stock market today: The Indian stock market experienced a widespread selloff on Thursday, May 30, on the expiry day of May futures and options (F&O) contracts. Market participants remained jittery ahead of the Lok Sabha election 2024 results, which are set to be announced next week on June 4.
The Sensex and the Nifty 50 experienced their fifth consecutive session of losses, each dropping by about 2 per cent over this period, resulting in investors losing nearly ₹10 lakh crore.
Election-related nervousness refuses to fade as uncertainty about the election outcome has grown in the last few days. The last phase of the election is to be held on Saturday, June 1, while the counting of votes will start on June 4. The results of the election could be clear on the same day later.
Even though most experts expect the BJP-led NDA to be re-elected, some do not see clear indications of a strong majority for the alliance.
“After six phases of Lok Sabha Elections, the market is still unconvinced about the kind of government formed after the Lok Sabha Polls,” said Avinash Gorakshkar, Head of Research at Profitmart Securities.
Other factors, including weak global cues, rising US bond yields, geopolitical tensions, and waning hopes of early rate cuts have also contributed to the recent rout in the Indian stock market.
Sensex ended with a loss of 617 points, or 0.83 per cent, at 73,885.60, while the Nifty 50 closed the day at 22,488.65, down 216 points, or 0.95 per cent.
The losses were even deeper in the mid and small-cap segments as the BSE Midcap and Smallcap indices fell 1.21 per cent and 1.33 per cent respectively.
The overall market capitalisation of the firms listed on the BSE dropped to nearly ₹410.4 lakh crore from nearly ₹4,15.1 lakh crore in the previous session, making investors poorer by about ₹4.7 lakh crore in a single session.
Top gainers in the Nifty 50 index
Only 10 stocks ended in the green in the Nifty 50 index, among which ICICI Bank (up 1.45 per cent), Axis Bank (up 1.06 per cent) and SBI (up 0.76 per cent) ended at the top.
Top losers in the Nifty 50 index
Shares of Tata Steel (down 5.19 per cent), Tech Mahindra (down 3.16 per cent) and Grasim (down 2.87 per cent) ended as the top losers in the Nifty 50 index.
Sectoral indices today
Barring Nifty Media (up 0.48 per cent), Nifty Bank (up 0.37 per cent) and Private Bank (up 0.32 per cent), all sectoral indices ended with losses.
Nifty Metal (down 3.01 per cent), IT (down 2.19 per cent), Healthcare (down 1.85 per cent), Pharma (down 1.81 per cent), Consumer Durables (down 1.67 per cent), FMCG (down 1.26 per cent), Oil & Gas (down 1.25 per cent) and Auto (down 1.21 per cent) lost significantly.
Expert view on markets
"The benchmark index is taking cues from the US market as treasury yields continue to climb following the stickiness of global inflation, delaying the central bank’s interest rates cut policy. Meanwhile, the broader market continued the weak trend, led by profit booking, due to feeble closing of monthly expiry owing to lack of interest to hold short-term positions, as exit poll is slated in the weekend," said Vinod Nair, Head of Research, Geojit Financial Services.
Technical views on Nifty 50
Shrikant Chouhan, Head Equity Research, Kotak Securities, observed that after a sharp correction, the market is trading near its 20-day SMA (simple moving average).
"The market has completed one leg of correction, and for the traders now, the 20-day SMA or 22,450/73,800 would act as the trend decider level. Above this, the index could bounce back to 22,600-22,750/74,100-74,500," said Chouhan.
"Fresh selloff is possible only after dismissal of 22,450/73,800. Below this, the market could slip to 22,350-22,325/73,500-73,300. The short-term traders should remain cautious and very selective as there is a risk of getting trapped at lower levels," said Chouhan.
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