Indian Stock Markets Face Selling Pressure After Global Market Fall
Indian stock markets experienced a decline during the opening session on Friday due to global market pressures. The Nifty 50 index fell by 221.90 points (0.89%) to 24,789, and the BSE Sensex dropped by 708.55 points (0.87%) to 81,158.99.
Market expert Ajay Bagga noted, “Indian markets had just crossed the 25,000 mark on the Nifty. The global pressure will have a bearing on the Indian markets as well. However, with ample liquidity with domestic investors, we expect every dip to be bought into. The global risk remains a sharp US fall and a disorderly unwinding of the Yen Carry trade. A lot will depend on domestic investors absorbing selling due to global factors.”
In the Nifty 50 list, TATA Steel, JSW Steel, TECH Mahindra, BPCL, and Power Grid were the top losers. The top gainers included Apollo Hospital, Hindustan UNILVR, DR Reddy, NESTLE India, and TATA Consumers with marginal gains of less than 1%.
In the broad market indices on the National Stock Exchange, Nifty VIX surged, leading to a fall in all indices, including Nifty Next 50, Nifty Small Cap, and Nifty Midcap. In the sectoral indices, except Nifty FMCG, all other sector indices faced selling pressure and opened with a decline.
Companies like Titan Company, Hindustan Zinc, Britannia Industries, GlaxoSmithKline Pharmaceuticals, LIC Housing Finance, Delhivery, and Edelweiss Financial Services are set to announce their quarterly results on Friday.
Experts pointed out that the US markets fell after soft economic data, and the Asian markets followed suit, showing selling pressure during early trade. Bagga added, “Soft US economic data led to a fall in US stock indices and the US 10-year yield falling below 4%. The fear in the market is that the US Federal Reserve has kept rates high and monetary policy too restrictive for too long. Asian markets have followed the US lead downwards this morning. Japanese stock markets are selling off more sharply on fears of a hawkish Bank of Japan raising rates further.”
The Indian stock market achieved a new milestone on Thursday, with both Nifty and Sensex reaching a record high. The Nifty closed at 25,010.00, up by 59.75 points (0.24%), and Sensex closed at 81,867.73, a rise of 126.38 points (0.15%). The Nifty’s ascent past the 25,000 mark marked a significant achievement, completing a 1,000-point rally in just 24 trading sessions, the third-fastest in its history.
Doubts Revealed
Stock Markets -: Stock markets are places where people buy and sell shares of companies. In India, the main stock markets are the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Nifty 50 -: Nifty 50 is an index that represents the top 50 companies listed on the National Stock Exchange (NSE) of India. It shows how well these companies are doing.
BSE Sensex -: BSE Sensex is an index that represents the top 30 companies listed on the Bombay Stock Exchange (BSE) of India. It helps to understand the overall performance of the stock market.
Ajay Bagga -: Ajay Bagga is a market expert who knows a lot about how stock markets work. He gives advice and shares his opinions on market trends.
Liquidity -: Liquidity means how easily assets can be converted into cash. In this context, it refers to the availability of money that investors have to buy stocks.
TATA Steel -: TATA Steel is a big company in India that makes steel. It is one of the top companies listed on the stock market.
JSW Steel -: JSW Steel is another large steel-making company in India. It is also listed on the stock market.
Apollo Hospital -: Apollo Hospital is a well-known chain of hospitals in India. It provides healthcare services and is listed on the stock market.
Hindustan UNILVR -: Hindustan UNILVR is a big company in India that makes everyday products like soap and shampoo. It is also listed on the stock market.
US economic data -: US economic data refers to information about how the economy in the United States is doing. This can include things like job numbers, inflation, and production rates.
