The downward trend is continuing in the Indian stock market. In addition to the impact of aggressive selling by foreign investors, traders are squaring off positions as SEBI has recently implemented stricter rules on F&Ds, due to which investors' capital has fallen further by Rs 9 lakh crore to Rs 452 lakh crore due to aggressive decline in small and midcaps.
In the last six trading sessions, investors' capital has declined by an average of Rs 26 lakh crore. The Sensex fell 638.45 points to 81050 intra-day, losing 962.39 points to close at 80726.06, losing the 81000 point level. The Nifty closed down 218.85 points at 24795.75. Looking at the negative trend in the market, analysts are pointing out that the Nifty may drop up to 24000 points.
Due to China's stimulus package, foreign investors have diverted towards it. An average of over 45,000 crore shares have been sold in the Indian stock market in the last six days. Among the Sensex pack, Adani Ports, NTPC, State Bank of India, Powergrid, IndusInd Bank, Axis Bank, HDFC Bank, Titan and Ultratech Cement were the top losers. The midcap index fell by 1.85 percent and the smallcap index by 3.27 percent.
In the sectoral index, utilities fell by 3.63 percent, while power by 3.14 percent and services by 3.12 percent. Apart from this, commodities fell by 2.54 percent, telecom by 2.49 percent, energy by 2.46 percent, oil and gas by 2.38 percent. RBI's monetary policy to be announced on Wednesday is also being watched.
…Six reasons this week are critical, apart from corporate earnings, the crude rally will impact the market
- RBI's policy- disclosure on interest rates and policy stance will take place on Wednesday, which will be important for banking and interest rate sensitive stocks.
- Crude prices – now at the highest level since August 2024 – crossing $80 will be watched.
- Dollar Index – A sluggish figure has seen a rebound after interest rates fell over the past one month, which will be negative for emerging markets.
- IT Companies Results- This week will kick off the results season with the results of IT companies, which will clarify the valuation picture.
- IIP – Inflation Data – Macro data announcements will be watched this weekend as the data has been weak for some time now.
- Geo-Political- A return to market stability will depend on whether a direct war breaks out between Iran and Israel or a proxy war progresses.
DII's buying of 13245 crore against FII's selling of 8293 crore supported Sentiment has been pro-safety with market breadth remaining negative. Out of the total 4178 traded on BSE, 636 scrips advanced and 3422 scrips declined. Which shows that the market sentiment has been cautious. The Sensex pack rose by 7 scrips. DII's buying of 13245.12 crore was supported against massive selling by FIIs of 8293.41 crore.
Ola Electric Battery down, shares fall more than 40 percent from peak In the shares of Ola Electric, the battery power has started to decrease within one and a half months… The listing of the company took place on August 9. Its issue price was Rs 76. After the listing, the stock gained momentum and within a few days the share price doubled to a record high of Rs.157.53. After that, in a very short period of one and a half months, the average has fallen more than 40 percent from the peak and is currently closing at Rs.90.82.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
