• durgesh dubey
• 05 Aug, 2024

Sensex

Indian markets faced a significant downturn today, mirroring a global sell-off, with both the Nifty and Sensex suffering substantial losses at the start of trading.

The Sensex plummeted by 1,500 points to 78,580.46 in early trade, while the Nifty dropped 489.65 points to 24,228.05. This sharp decline followed the release of US jobs data on Friday, which showed slower-than-expected growth in July, heightening fears of an economic slowdown and impacting global equities.

On Monday, August 5, Indian markets opened lower amidst global stock market weakness. The Sensex was last recorded down 1,304.32 points or 1.61% at 79,677.63, and the Nifty slipped 386.8 points or 1.56% at 24,330.9. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, commented, "Valuations in India, driven mainly by sustained liquidity flows, remain high, particularly in the mid and small caps segments. Overvalued sectors like defence and railways are likely to face pressure. The 'buy-on-dips' strategy that has been effective during this bull run may now be at risk. Investors should wait for the market to stabilize before making any purchases."

In the broader market, the Nifty Midcap 100 and Smallcap 100 were trading in deep red. However, the high-beta Nifty Bank was up 1.68% at 50,489.55.

The BSE Sensex and Nifty 50 ended their five-day winning streak with losses of over 1% on Friday due to a broad-based selloff and weak global cues. The 30-share Sensex closed at 80,981.95, down 886 points or 1.08% from Thursday, while the Nifty 50 fell by 1.17% or 293 points to 24,717.70.

The BSE midcap index shed 1% and the smallcap index fell 0.5%. All sectoral indices except Nifty Pharma ended in the red, with auto, energy, PSU Bank, IT, metal, and realty sectors down by 1-3%.

Among the Nifty 50 stocks, 42 ended in the red, with Eicher Motors, Tata Motors, Maruti Suzuki India, and JSW Steel being the top losers, falling up to 5%. Conversely, Divis Labs, HDFC Bank, Dr. Reddy’s Labs, Sun Pharma, and Britannia Industries were the top gainers.

On the BSE, Maruti Suzuki India, Tata Motors, JSW Steel, and Larsen & Toubro were the top losers, while HDFC Bank, Sun Pharma, and Nestle India managed to record some gains.

On Sensex slumps by over 1600 points, Market Expert Sunil Shah says, "On the last trading day, Friday we saw a deep cut in Sensex. Today, it opened on expected line with a gap down...We are seeing in the global market that there is selling pressure because the trades are unwinding. This will continue for some time till again things stabilise. India will be the early one to stabilise as there are a lot of foreign portfolio investors selling Indian equities. So I think Indian markets will stabilise very early...We should not be very worried about it because there is nothing wrong fundamentally. In the last two trading sessions, what we saw was due to Japanse Central Bank raising interest. My suggestion is to look for an opportunity and if there is a deep correction, buy those shares and good companies..."