Sensex Tanks 1100 Points, Nifty Down 350 Points: Stock Market In deep Red, What next??
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Indian stock market witnessed a significant downturn on Wednesday and Spill over to Thursday as well, impacted by weak global market trends and ongoing foreign fund outflows. Both Sensex and Nifty experienced a decline of approximately one percent each, while the metal sector faced substantial pressure, leading to a broad decline across various sectors on the same day…[ Read More ]…
NEWS::
Indian stock market witnessed a significant downturn on Wednesday and Spill over to Thursday as well, impacted by weak global market trends and ongoing foreign fund outflows. Both Sensex and Nifty experienced a decline of approximately one percent each, while the metal sector faced substantial pressure, leading to a broad decline across various sectors on the same day.
The bearish sentiment can be attributed to factors such as the US rating downgrade and investors’ profit booking due to concerns over high stock valuations, a matter highlighted by analysts, as well as mixed global economic data.
In contrast, India’s overall unemployment rate showed improvement in July, as rural areas experienced a surge in demand for agriculture labor with the onset of monsoon rains. According to data released by the private forecaster Centre for Monitoring Indian Economy, the total joblessness rate decreased to 7.95% in July, down from 8.45% in June.”
EXPERT’S TAKES:
“The major news after market close yesterday is the rating agency Fitch’s downgrade of US sovereign rating from AAA to AA+. This has impacted bond and currency markets with the US 10-year yield rising above 4%,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
“The impact on the stock markets is likely to be negative but not large since the US economy is now headed for a soft landing and not a recession, as markets feared earlier,” Vijayakumar added.
Om Mehra, Equity Research Analyst at Choice Broking, said, “Technically, the Nifty has critical support around 19650, as the Index is forming Higher Lows in hourly charts. Option writing data is dominated by the call writers which indicate a Negative sentiment. Banking stocks could remain in focus as if it could support the benchmark Indices.”