Stock market today: Sensex and Nifty 50 fall for 3rd consecutive session; investors lose nearly ₹3 lakh crore in a day

Stock market today: Sensex and Nifty 50 fall for 3rd consecutive session; investors lose nearly ₹3 lakh crore in a day/ANI

Dil Bar Irshad | May 28, 2024 | 04:40 PM IST | Breaking News | Follow on Google News

Stock market today: Sensex and Nifty 50 fall for 3rd consecutive session; investors lose nearly ₹3 lakh crore in a day

Stock market today: Sensex and Nifty 50 fall for 3rd consecutive session; investors lose nearly ₹3 lakh crore in a day

Mint

Stock market today: The Indian stock market continued reeling under pressure on Tuesday, May 28, as the benchmarks—the Sensex and the Nifty 50—ended in the red for the third consecutive session.

The Indian stock market has seen strong volatility this month amid strong foreign capital outflow due to election-related caution. The market has been swinging between gains and losses amid a lack of fresh triggers, high valuation and mixed global cues.

The India VIX, an index measuring market volatility, has surged by 88 per cent in May so far, indicating heightened nervousness in the market due to the ongoing Lok Sabha election. On Tuesday, May 28, the India VIX rose over 4 per cent to the 24.20 level.

Experts expect the market to remain volatile till the election outcome on June 4.

In addition to election-related uncertainties, several key macroeconomic indicators, such as India’s Q4 FY24 GDP figures, US PCE inflation data, and European countries’ inflation data, will influence the market sentiment this week.

Nifty 50 opened 45 points higher at 22,977.15 against its previous close of 22,932.45 and climbed 66 points in intraday trade to the level of 22,998.55. The index, however, failed to hold gains, a trend observed in the last few days, to close 44 points, or 0.19 per cent, lower at 22,888.15 with 28 stocks in the red.

The Sensex opened at 75,585.40 against its previous close of 75,390.50 and touched its intraday high of 75,585.40. The 30-share pack finally closed with a loss of 220 points, or 0.29 per cent, at 75,170.45, with 20 stocks in the red.

Mid and smallcaps suffered more. The BSE Midcap and Smallcap indices lost 0.63 per cent and 1.09 per cent respectively.

The overall market capitalisation of the firms listed on the BSE dropped to nearly ₹417 lakh crore from nearly ₹420 lakh crore in the previous session, making investors poorer by about ₹3 lakh crore in a day.

Top gainers in the Nifty 50 index

Shares of Divi’s Labs (up 3.05 per cent), SBI Life Insurance Company (up 2.96 per cent) and HDFC Life Insurance Company (up 2.44 per cent) ended as the top gainers in the Nifty index.

Top Nifty 50 losers today

Shares of Adani Ports (down 2.17 per cent), Power Grid (down 1.64 per cent) and BPCL (down 1.59 per cent) ended as the top losers in the Nifty index.

Sectoral indices today

The majority of sectoral indices ended in the red. Nifty Realty (down 2.16 per cent), PSU Bank (down 1.28 per cent) and Oil and Gas (down 1.02 per cent) lost significantly. Nifty Bank slipped 0.28 per cent, while the Private Bank index dropped 0.31 per cent.

Expert view on markets

“The Indian market exhibited mild consolidation post the recent sharp surge. The uncertainty-led volatility will likely continue as the market approaches the election outcome,” said Vinod Nair, Head of Research, Geojit Financial Services.

“The underlying earnings growth for the March quarter results so far was largely above expectations, which would likely support the valuation, which is currently moderately above the long-term average,” Nair said.

Technical views on Nifty 50

Shrikant Chouhan, the head of equity research at Kotak Securities, observed that the current market texture is non-directional.

“On the downside, 22,800 -22,750/74,900-74,700 would be the key support zones while 23,000-23,100/75,500-75,700 could be the crucial resistance areas for the day traders,” Chouhan said.

“For the day traders now, buying on dips and selling on rallies would be the ideal strategy. However, below 22,750/74,700, the sentiment could change. Below this, traders may prefer to exit out from trading long positions,” said Chouhan.

Dil Bar Irshad

Dil Bar Irshad is a seasoned journalist, hails from Jammu Kashmir's Doda, covers political, social, business stories, index stories.