Market Close: Metals Drop; Nifty Below 19,000; Sensex Down 285 Points Ahead of US Fed Decision

Wednesday’s trading of equity benchmark indexes was biased down due to ongoing selling pressure in several IT and metal equities.

The S&P BSE Sensex eventually closed 284 points down at 63,591, having reached a low of 63,550. The NSE Nifty 50 finished with a loss of ninety points, falling below the 19,000-mark once market close metals drop nifty below 19000 sensex down 285 points ahead of us fed 1 1

With declines of more than 2% apiece, Asian Paints and Tata Steel were the two biggest laggards on the Sensex. The other notable losses, each down more than 1%, were Maruti, JSW Steel, HCL Technologies, TCS, NTPC, Nestle, Axis Bank, Larsen & Toubro, and Infosys.

Positively, Sun Pharma had a 2.7% rise after its Q2 earnings. SBI, Bajaj Finserv, ITC, and Reliance all saw moderate increases at the end.

Alongside the benchmark, the BSE MidCap index saw a 0.4% decrease in the whole market. On the other hand, the SmallCap index decreased by just 0.1%.

Sector-wise, the BSE Metal index dropped 1.5%. The Realty index rose 1.5%, while the IT and Power indexes were the other two big losers.

The uncertainty surrounding the West Asian situation is at its highest point, according to Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. This is because of the escalating ground battle in Gaza. As of right now, we have no idea how, when, or what will happen after this conflict ends. As a result, investors have to stick to their cautious approach.

It is crucial to realize that the US bond rate increase is having a greater influence on global equities markets than the Israel-Hamas war. Stock markets, especially those in developing economies, will continue to face significant challenges due to the US 10-year bond rate, which is now around 4.9%. It’s probable that FIIs’ persistent selling will continue to pressure markets. For India, the drop in Brent crude to $85 is a huge plus. This announcement will have a good impact on the aviation, paint, and tire stocks, according to Vijaykumar.

“Investors may keep an eye on the performance of prestigious large-cap companies like Maruti, ICICI Bank, HDFC Bank, RIL, ITC, and L&T, since they have reported strong Q2 earnings. He said, “These companies will see significant institutional buying when normalcy returns because they have good earnings visibility.”


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