Stock market crash: Sensex jumps 1,000 points, Nifty below 25,900; Here are 6 reasons to fall today
Indian stocks in Monday’s trading after sustained gains last week suffered heavy losses. At last count, the Sensex was down over 1.17 percent or 1,001.6 points at 84,570.25, while NSE’s benchmark 50-share Nifty 50 was down over 1 percent or 292 points at 25,886.9.
The Bank Nifty also fell 1.35 percent to 53,107, with the biggest decline seen in heavyweights including HDFC Bank, ICICI Bank and Axis Bank among others. During this crash, India VIX also increased by 7 percent.
Here are the things that are playing spoilsport for Indian stocks today.
Nikkei’s fall weighs on the road:
Japan’s Nikkei in today’s trade fell about 5 percent amid expectations that the country’s new prime minister favors interest rate hikes. Speculation lifted the Yen, pushing the index lower in return. While globally, the outlook is about easing monetary policy, the expected policy takeover affects global equity.
International sales:
Sector-wise, all indices are trading with deep cuts of up to 2 percent in the Realty sector. However, losses have been achieved between the long-term benefits of consumers and the metal pack.
The Auto pack is under pressure ahead of its September sales
The Nifty Auto index was last traded down 1.75 percent ahead of its September sale due tomorrow.
Anand Rathi in his auto sales preview report said that the double digit wholesale volume growth of 2W in the year of Sep’24 is likely to bear on built stock (strong festival expectations), first festival season and favorable base (Honda).
Tractors are likely to do well with a positive growth of 10%, led by sales (~ double digit high) on good monsoon and favorable base. PV volumes are likely to grow slightly, due to the early festival season and stocks built up against muted demand, it added.
Panicking ahead of the US Fed Chairman’s speech later today
With markets still waiting for further signs that interest rates will continue, sentiment remained subdued ahead of today’s key Federal Reserve Powell speech that kept markets afloat.
Route of raw values
Zee Business Managing Editor also pointed out that if brent crude remains above $76-77 per bbl it may be a cause of concern for Indian stocks. This is because the increase in import costs will offset the country’s current account deficit. At last count, Brent crude traded above $73 per bbl.
Technology
Anand James, Chief Market Strategist, Geojit Financial Services noted that we expect to start the week with hopes of 26600 staying alive, but there is a high chance of increased volatility. Although another attempt to push higher is seen, the oscillators are still giving the same signals that caused the downward turn on Friday. So we will mark 26230 and 26130 as exhaustion points on either side of the initial range.
