Market News
2 min read | Updated on August 05, 2024, 16:42 IST
SUMMARY
Indian benchmark indices declined sharply on Monday, on the back of heavy global selloff. Market breadth was extremely weak on Monday and broader markets witnessed a steeper fall with all sectoral indices ending in red.
Bloodbath on the streets: NIFTY50 and SENSEX plunges over 2.60% amid global selloff
Indian equity benchmark indices ended Monday's session at an over-one-month low, weighed down by index heavyweights such as Reliance Industries and HDFC Bank. Bears dominated the trading session right from the outset amid a broad-based sell-off in global markets.
Due to the collapse of the yen carry trade, investors throughout the world are scrambling to unwind trades. On Monday, major international markets experienced significant drops. During the Monday trading session, all three major indices of Japan, Taiwan, and South Korea had downward circuits.
At the end of the day, NIFTY50 and SENSEX declined 2.68% and 2.74%, respectively. Broader market indices witnessed a steeper correction as the Midcap 100 and Smallcap 100 index fell 3.55% and 4.57%, respectively.
With the steep fall of about 3% in the last two-trading sessions, the NIFTY50 index is now trading closer to its 50-DMA. The 50-DMA is placed at a level of 23,862, this could serve as an important support level for the index in the near term.
In the NIFTY50 space, 5 stocks advanced, and 45 stocks declined. Hindustan Unilever (+1.02%), Tata Consumers (+0.70%), Nestle India (+0.68%), Britannia (+0.51%), and HDFC Life (+0.21%) were the top gainers. Laggards included Tata Motors (-7.40%), ONGC (-6.39%), Adani Ports (-5.92%), Tata Steel (-5.61%), and Hindalco (-5.25%).
Today, the broader market closed on a negative note. The Nifty Midcap 100 slipped by -3.55%, and the Nifty Smallcap 100 index plunged by -4.57%. Market breadth was extremely weak on Monday as the declining stocks outnumbered the advancing stocks.
All the sectoral indices ended in the red. The top three losers were NIFTY Metal (-4.85%), NIFTY Media (-4.58%), and NIFTY Realty (-4.32%).
Asian markets continue to decline. Japan’s Nikkei 225 crashed over -13% on Monday. The Hang Seng declined by -1.48%, the Shanghai index closed with a loss of -1.54%, and the Kospi index plunged by -8.77%.
At 3:44 PM, the Dow Jones Futures were trading down by -709 points at 39,170.
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