Nifty 50 and Sensex Extend Losses for Fourth Consecutive Session Amid Weak Global Cues.

Nifty 50 and Sensex Extend Losses for Fourth Consecutive Session Amid Weak Global Cues.

Asif Iqbal | September 22, 2023 | 04:40 PM IST | Breaking News | Follow on Google News

Nifty 50 and Sensex Extend Losses for Fourth Consecutive Session Amid Weak Global Cues. Pic/mint

Weak global cues, including rising US Treasury yields and higher crude oil prices, contribute to losses in Indian stock markets.

Market Performance and Factors

The Nifty 50 and Sensex, India’s two benchmark stock indices, posted losses for the fourth consecutive trading session. Weak global cues, particularly the rise in US Treasury yields and a 1% increase in crude oil prices, dampened investor appetite for riskier equities. Investors are concerned about the possibility of another interest rate hike by the US Federal Reserve by the end of the year, following the Fed’s recent hawkish tone.

Central Bank Actions

The Federal Reserve’s indication of further rate hikes, along with the Bank of England’s decision to leave rates unchanged and the Bank of Japan’s dovish monetary policy guidance, have impacted market sentiment.

Market Closing Figures

The Nifty 50 ended the day with a loss of 68 points, or 0.34%, closing at 19,674.25, while the Sensex closed at 66,009.15, down 221 points, or 0.33%.

Mid and Small Caps

Mid and small-cap stocks outperformed the benchmarks, with the BSE Midcap index closing lower by 0.14% and the BSE Smallcap index registering a nominal gain of 0.04%.

Weekly Performance

For the week ending September 22, the Nifty 50 fell by 2.6%, while the Sensex declined by 2.7%. The BSE Midcap index and Smallcap index lost 1.7% and 2%, respectively.

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Market Capitalization

The overall market capitalization of companies listed on the BSE decreased from nearly ₹323.4 lakh crore on September 15 to approximately ₹317.8 lakh crore, resulting in a loss of about ₹5.6 lakh crore for investors in just one week.

Top Gainers and Losers

IndusInd Bank, Maruti Suzuki India, and State Bank of India (SBI) were among the top gainers in the Nifty 50 index, while Wipro, Dr. Reddy’s Laboratories, and UPL were the top losers.

Sectoral Performance

Most sectoral indices ended the day with losses, with the Nifty Healthcare and Nifty Pharma indices falling by 1.59% and 1.55%, respectively. Consumer Durables, Realty, and Metal sectors also saw significant declines. The Nifty Bank index closed 0.03% lower, while the Nifty PSU Bank index surged 3.51% after JP Morgan’s decision to include Indian government bonds in its emerging-market debt index. The Nifty Auto index rose by 0.21%.

Expert Insights

Market experts attributed the decline in Indian markets to mixed cues from US and Asian markets, ongoing concerns about rising US bond yields, and fears of higher interest rates in the US. They noted that despite recent gains, market valuations remained expensive. Technical analysts pointed to key support and resistance levels for the Nifty 50, anticipating a possible pullback rally in the near future.

Key Support and Resistance Levels

The Nifty 50’s key support zones are 19,600 and 19,500, with key resistance areas at 19,800 and 19,900. Technical analysts emphasized the importance of these levels for short-term traders.

Market Outlook

Investors are closely monitoring global developments and central bank actions for their potential impact on Indian markets. Concerns about interest rates, inflation, and global economic conditions continue to influence market sentiment.

Asif Iqbal

Asif Iqbal is a seasoned news writer with a passion for delivering the latest updates to the public. Currently serving as the senior writer at VoM News, a prominent news outlet known for its comprehensive coverage of diverse topics, Asif has established himself as a reliable source of information. With a keen eye for detail and a knack for storytelling, he consistently provides readers with well-crafted articles that cover a wide range of news categories. His dedication to journalistic integrity and his commitment to staying ahead of the news curve make him an invaluable asset to Vom News, ensuring that readers are always well-informed on the issues that matter most. You can find his work and stay updated on current events by visiting vomnews.in.