BUSINESS

Investors lose about ₹10 lakh crore in 5 sessions as Sensex and Nifty 50 decline for the fifth consecutive day

Current stock market conditions: On Thursday, May 30, the expiration day of May futures and options (F&O) contracts, there was a major selloff in the Indian stock market. Ahead of the announcement of the Lok Sabha election 2024 results on June 4 of next week, market investors were nervous.

Both the Sensex and the Nifty 50 saw losses for the sixth straight session during this time, falling by almost 2% each, costing investors close to ₹10 lakh crore.

Uncertainty about the election’s result has increased in recent days, so election-related anxiety isn’t going away. The election’s final stage will take place on Saturday, June 1, and the vote-counting process will begin on June 4. It’s possible that the election results may become evident that same day.

Although the majority of observers predict that the BJP-led NDA would win reelection, others do not believe there is a clear sign of a sizable majority for the coalition.

According to Avinash Gorakshkar, Head of Research at Profitmart Securities, “the market is still unconvinced about the kind of government formed after the Lok Sabha Polls” after six stages of the elections.

The recent collapse in the Indian stock market has also been attributed to other causes, including as poor global signals, increasing US bond rates, geopolitical concerns, and dwindling expectations of early rate reductions.

The Nifty 50 finished the day at 22,488.65, down 216 points, or 0.95 percent, while the Sensex finished the day at 73,885.60, down 617 points, or 0.83 percent.

In the mid- and small-cap categories, the losses were even more severe, with the BSE Midcap and Smallcap indexes declining 1.21 percent and 1.33 percent, respectively.

Investors lost almost ₹4.4 lakh crore in one session when the total market capitalization of the companies listed on the BSE fell to approximately ₹410.7 lakh crore from over ₹4,15.1 lakh crore in the previous day.

Nifty 50 index top gainers
In the Nifty 50 index, just ten firms concluded the day higher than they started, with ICICI Bank (up 1.45%), Axis Bank (up 1.6%), and SBI (up 0.76%) finishing highest.

Nifty 50 index top losers
Top losers in the Nifty 50 index at the conclusion of the day were shares of Tata Steel (down 5.19 percent), Tech Mahindra (down 3.16 percent), and Grasim (down 2.87 percent).

Currently, sectoral indexes
All sectoral indexes concluded with losses, with the exception of Nifty Media (up 0.48 percent), Nifty Bank (up 0.37 percent), and Private Bank (up 0.32 percent).

A number of industries had large losses, including Nifty Metal (down 3.01%), IT (down 2.19%), Healthcare (down 1.85%), Pharma (down 1.81%), Consumer Durables (down 1.67%), FMCG (down 1.26%), Oil & Gas (down 1.25%), and Auto (down 1.21%).

knowledgeable assessment of markets
“The benchmark index is following the US market’s lead as bond yields rise in response to the stickiness of global inflation, postponing the central bank’s plan to lower interest rates. The negative trend in the wider market was maintained by profit booking, which was caused by a weak monthly expiration closure and a lack of interest in holding short-term positions since the exit poll was scheduled for this weekend, according to Vinod Nair, Head of Research at Geojit Financial Services.

Expert opinions on the Nifty 50
The market is trading close to its 20-day SMA (simple moving average) after a significant correction, according to Shrikant Chouhan, Head Equity Research at Kotak Securities.

The market has finished one leg of its correction, and traders should now use the 20-day SMA, or 22,450/73,800, as a marker to determine which way to go with the trend. The index may return to 22,600–22,750 or 74,100–74,500 above this, according to Chouhan.

Fresh selloffs may only occur with the discharge of 22,450/73,800. The market may drop to 22,350–22,325 or 73,500–73,300 below. Because there is a chance of becoming stranded at lower levels, short-term traders should continue to be very selective and careful, according to Chouhan.

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