Stock market closes in red after trading in negative on weak global cues
The World Bank, meanwhile, retained India's GDP growth forecast for the financial year 2023-24 at 6.3 per cent, noting that the country continued to show resilience against the backdrop of a challenging global environment.
Mumbai: After being in the negative territory on weak global cues, the stock market closed in the red.
International markets faced significant turmoil, sending shockwaves through global financial centres, which reverberated in Indian equities.
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At the closing bell, the Sensex reported a decline of 323.09 points, settling at 65,505.32, while the Nifty also ended in the red, closing 109.55 points lower, at 19,528.75.
Among the Nifty companies, there were 12 advances and 37 declines, underscoring the broad-based pressure on the market.
Top gainers among the Nifty firms included Bajaj Finance, Larsen & Toubro (LT), Titan, Bajaj Finserv, and Adani Ports, signalling some resilience in select sectors.
While the bears were firmly in control, the top losers at the time of closing included ONGC, Eicher Motors, Maruti, Hindalco, and Dr Reddy.
The World Bank, meanwhile, retained India’s GDP growth forecast for the financial year 2023-24 at 6.3 per cent, noting that the country continued to show resilience against the backdrop of a challenging global environment.
Dhruv Sharma, senior economist, World Bank, said on the growth projection, “Our team expects India’s growth in this fiscal year fiscal year 2324 to be 6.3 per cent. This number is unchanged from our previous projection which was delivered six months ago. We are expecting growth to be underpinned by robust private investment, and we expect to see some strength in the services sector as well. The moderation and our number from last year’s growth number which was 7.2 per cent is largely as a result of a moderating consumption and challenging external conditions.”
The persistent negative sentiment in global markets weighed heavily on India’s stock indices, particularly impacting sectors such as Oil and Gas, Automobile, and Pharmaceuticals.
Varun Aggarwal, founder and managing director, Profit Idea, said, “Nifty closed in minus today on expected global sentiments. Oil & Gas, Automobile & Pharma shares dragged the index on the lower side”.
“Nifty made two attempts to go below 19500 levels but managed to close above that. Heavy put writing at 19200-19300. It will be important to see how market behaves in this weak global sentiments,” Aggarwal added.
Throughout the trading session, the Nifty made two attempts to breach the crucial 19,500 levels but managed to hold above that threshold at the closing bell.
The presence of substantial put writing at the 19,200-19,300 levels reflected cautious trading sentiment, suggesting a degree of support at these levels.
Aggarwal said, “Traders should trade cautiously. Avoid overnight positions and prefer to make risk defined strategies. Investors should look to accumulate good stocks on dips in staggered manner. IT, Metal, Financial Services, and Banks looks strong for medium term. Bias remains positive for Indian Markets. Bull momentum will stay intact till market is above 18887.”
Analysts emphasised the need to closely monitor market behaviour amid the ongoing weak global sentiments, stressing traders should exercise caution and avoid overnight positions.
Risk-defined strategies were recommended for those participating in the market.
For investors, the day’s decline presented an opportunity to accumulate fundamentally strong stocks on market dips, preferably in a staggered manner.
Key sectors to watch in the medium term included Information Technology, Metals, Financial Services, and Banks, which exhibited relative strength amid market turbulence.
Despite the day’s challenges, the overall bias for Indian markets remained positive. Analysts noted that the bullish momentum would remain intact as long as the market held above the key support level of 18,887.
However, the market’s resilience will be put to the test in the coming days as it navigates the uncertain global landscape.
