Indian Stock Market Dips Amid Weak US Cues and Domestic IT, PSU Bank Weakness
Indian stock indices closed slightly lower on Wednesday, influenced by weak US market cues and domestic IT and PSU bank stocks. Sensex fell by 202.80 points to 82,352.64, and Nifty dropped by 81.15 points to 25,198.70. Concerns over US economic slowdown and profit booking at higher levels contributed to the decline.
Despite recent gains, experts suggest global pressures could lead to consolidation. Vinod Nair, Head of Research at Geojit Financial Services, noted that weak US manufacturing data added concerns about a potential slowdown in the US economy, affecting domestic indices. Ajit Mishra, SVP of Research at Religare Broking Ltd, mentioned that bulls are still holding their ground, though consolidation could occur if global pressures intensify.
India’s GDP growth forecast was revised to 7% for 2024-25 by the World Bank, with the economy growing by 6.7% in the April-June quarter of the current financial year. GST collections in August were Rs 1.74 lakh crore, showing a yearly increase of 10%. So far in 2024, total GST collection has been 10.1% higher at Rs 9.13 lakh crore compared to the same period in 2023.
Doubts Revealed
Stock Market -: The stock market is a place where people buy and sell shares of companies. It’s like a big marketplace for company ownership.
US Cues -: US cues refer to signals or trends from the United States’ stock market that can influence other markets, like India’s.
IT Stocks -: IT stocks are shares of companies that work in Information Technology, like making software or providing tech services.
PSU Bank -: PSU banks are Public Sector Undertaking banks, which are banks owned by the government of India.
Sensex -: Sensex is a stock market index in India that shows the performance of 30 major companies listed on the Bombay Stock Exchange (BSE).
Nifty -: Nifty is another stock market index in India, showing the performance of 50 major companies listed on the National Stock Exchange (NSE).
US Economic Slowdown -: A US economic slowdown means that the economy in the United States is growing more slowly than before, which can affect other countries’ economies too.
Profit Booking -: Profit booking is when investors sell their shares to make a profit, especially after the prices have gone up.
Consolidation -: Consolidation in the stock market means that prices are staying within a certain range and not moving up or down a lot.
GDP Growth Forecast -: GDP growth forecast is a prediction of how much the economy will grow in the future. GDP stands for Gross Domestic Product, which is the total value of all goods and services produced in a country.
GST Collections -: GST collections refer to the money collected by the government through the Goods and Services Tax, which is a tax on most goods and services sold in India.
