Sensex falls over 300 points, Nifty below 24,550 as oil prices rise. What lies ahead?
Sensex fell over 300 points to 78,215, while Nifty 50 over 50 points to slip below 24,550, as seen at 9.25 am. Broader markets however remained in the green, with Nifty Smallcap 100 and Nifty Midcap 100 indices rising up to 0.4%.
IndiGo, Bajaj Finance and Bharti Airtel shares were the top losers on Sensex, falling 1-2%. UltraTech Cement, Axis Bank, SBI, Reliance Industries, Kotak Mahindra Bank and Sun Pharma shares meanwhile dropped nearly 1% each to follow. Bucking the trend, HCLTech, Tech Mahindra and Titan shares gained more than 1% each.
Among the sectors, Nifty PSU Bank and Nifty Private Bank indices fell 0.5-0.7% to lead losses, while Nifty IT gained nearly 1%. The overall market breadth however remained slightly positive, with NSE seeing 1,373 advances against 1,169 declines, while 119 stocks remained unchanged.
What lies ahead for Dalal Street?
Rising Brent crude price continues to be an irritant for the market even as other fundamentals exhibit strength, said VK Vijayakumar, Chief Investment Strategist at Geojit Investments. He noted that a significant pivot in the market is the FIIs turning buyers, encouraged by the better-than-expected Q1 results and stability in the rupee. These positives have the potential to keep the market resilient with a slight upward bias, he said, adding that robust domestic consumption can ensure the sustainability of earnings growth through FY27.
“Big FCNR (B) inflows can support the rupee, which, in turn, can facilitate more FII inflows. FIIs are doing a capital rotation away from the ‘chip trade’ in South Korea and Taiwan and are compensating for the under ownership in Indian stocks. This trend is likely to continue. Interestingly FIIs are investing in expensive stocks in sectors like telecom, renewable energy, capital goods and pharmaceuticals rather than attractively valued banking majors,” according to the analyst.Technical view on Nifty
Nifty 50 in the previous session remained volatile within a narrow range during the day, said Rupak De, Senior Technical Analyst at LKP Securities. He added that the near to short-term trend remains sideways to positive, as the index has been sustaining above the critical short-term 50 EMA.
The daily RSI remains in a bullish crossover, De said, adding that the 24,650 level remains a key resistance. A decisive move above this level might induce a sustained rally in the market. On the lower end, support is placed at 24,500, below which weakness might intensify, he said, while noting that until then, investors should expect range-bound and lacklustre movement.
(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
