return to news
  1. NIFTY50 and SENSEX witness sell off led by negative global market sentiments

Market News

NIFTY50 and SENSEX witness sell off led by negative global market sentiments

Upstox

3 min read | Updated on August 02, 2024, 14:17 IST

Twitter Page
Linkedin Page
Whatsapp Page

SUMMARY

Benchmark equity indices started the trading session negatively, while broader indices also traded in red. Additionally, Nifty FMCG was the top gainer, while Nifty Auto was the major loser.

shutterstock_2452674137.webp

NIFTY50 and SENSEX open lower as recession fear grips global market

Today, Indian equity benchmark indices began the last trading day of the week on a negative note, with NIFTY50 and SENSEX declining significantly. The broader markets also opened on a negative note. The fall in the Indian markets is due to the back sell-off in the global markets.

Key triggers for market fall

  • Rising tensions between Iran and Israel may lead to full blown escaltion of war like situations in the middle east.
  • The ISM manufacturing index, a key gauge of U.S. manufacturing activity, fell to its lowest level since November.
  • Jobless claims for the week came in higher than expected. Additionally, disappointing quarterly results from major tech companies in the US dampened market sentiment.
  • Asian markets too fell across the board as recession fears grip global markets. Japanese Nikkei, Hong Kong's Hangseng and Korean Kospi index fell nearly 4% on Friday morning.

In the early trading session, Nifty FMCG was the top gainer among sectors, while Nifty Auto was the top loser. The India VIX has surged by 3.58%, trading above the 13-mark.

On Thursday, August 01, 2024, foreign institutional investors (FII) bought shares worth ₹2,089.28 crore, while domestic institutional investors (DII) offloaded shares worth ₹337.03 crore.

At 09:25 am, the SENSEX plunged by 0.75%, trading below the 81,300 level. The NIFTY50 also declined by 0.79%, trading below the 24,900 mark. Additionally, Nifty Bank experienced a decline of 0.75%, trading below the 51,200 level.

Broader indices

Looking at the broader indices, the Nifty Midcap 100 index was trading in the red, down by 0.7% and trading below the 58,100 level, while the Nifty Smallcap 100 also declined by 0.83% and is trading below the level of 18,800 mark. Market breadth is skewed in favour of declines.

Sectoral Performance

Within the sectoral landscape, Nifty FMCG (+0.59%), Nifty Media (+0.41%) and Nifty Pharma (+0.42%) are the major sectors which are trading positively while Nifty Auto (-1.78%), Nifty Metal (-1.85%) and Nifty Realty (-1.41%) are trading negatively.

Top Gainers and Losers

In the NIFTY50 space, Hindustan Unilever (+1.16%), Sun Pharma (0.85%) and Dr Reddy’s Laboratories (+0.71%) are among the top gainers. On the other hand, Tata Motors (-3.2%), Maruti (-2.8%) and Tata Steel (-2.9%) are among the top losers.

U.S. Markets

U.S stocks started August with significant declines after Thursday's economic data raised concerns about a potential faster-than-expected economic slowdown, even as the Federal Reserve continues its restrictive monetary policy.

The U.S. 10-year Treasury yield fell by 48 basis points to 3.95%, while the U.S. 2-year bond yield dropped by 59 basis points to 4.12%.

Commodities

On August 2, oil prices climbed but are on track for a fourth straight weekly decline. Sluggish global fuel demand growth outweighs concerns about potential supply disruptions in West Asia.

Brent crude futures rose by 0.4% to $79.85 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 0.5% to $76.69.

Stocks in F&O Ban

Stocks that are banned for trading in the F&O segment on August 02, 2024, are Birlasoft, Gujarat Narmada Valley Fertilizers & Chemicals, Granules, India Cements, Indiamart Intermesh and RBL Bank.

About The Author

Upstox
Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

Next Story