Stock Market Crash (Image Source: iStockphoto)
On Tuesday, the Bombay Stock Exchange’s Sensex fell 930.55 points to close at 80,220.72. Similarly, the Nifty index saw a massive decline of 309 points, ending the day at 24,472.10.
ICICI Bank, Nestle India, and Infosys were among the top gainers on the Nifty index. Tata Consumers, Kotak Bank, BPCL, and Bajaj Finserv were among the top losers.
The market capitalisation of all companies listed on the Bombay Stock Exchange (BSE) has dropped by more than Rs 9 lakh crore as a result of today’s market fall, to Rs 444.31 lakh crore.
Reasons Behind Today’s Market Crash
Vinod Nair, Head of Research, Geojit Financial Services, said, “Bearish sentiment continued to dominate the domestic market today amid heightened volatility, with small and midcap stocks taking the biggest hit. The recent sharp rise in US bond yields signals diminished expectations for aggressive rate cuts by the US Fed, also affecting fund flows to EMs. In the short term, this bearish outlook may persist due to sluggish earnings growth trends”
Jatin Gedia – Technical Research Analyst at Sharekhan by BNP Paribas, said, “On the daily charts Nifty has slipped decisively below the 20-week average (24718) which is a sign of weakness. Daily and hourly momentum indicators possess a negative crossover which is a sell signal. Thus, both price and momentum indicator suggest towards weakness. On the downside, we expect the Nifty to drift towards 24000 where there is a high concentration of open interest on the put side implying support. On the upside, 24900 – 25000 shall act as a crucial resistance from short term perspective.”
Gedia added, “Bank Nifty which was holding on till yesterday also broke down and witnessed a sharp selling pressure. We expect weakness to have a rub off effect on the Banking stocks as well. On the downside, support is placed at 51000 below which it can slip towards 50200. On the upside 51800 – 51900 shall act as an immediate hurdle zone.”
According to the exchange data, Foreign Institutional Investors (FIIs) sold equities amounting to Rs 2,261.83 crore and Domestic Institutional Investors (DIIs) purchased equities amounting to Rs 3,225.91 crore respectively on the previous trading day.
