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In the current stock market scenario, the BSE Sensex and Nifty50 faced a significant downturn as bears halted the recent bullish trend. Today's opening saw both key indices, the BSE Sensex and Nifty50, plunging by 0.5%.
The Nifty50 stood at 21,034.45, marking a decline of more than 110 points or 0.55%. This downturn led investors to incur losses of nearly 9 lakh crore, with the BSE Sensex plummeting by over 930 points during Wednesday's trading.
Market analysts were surprised by the bear attack, although many had anticipated profit booking following the consistent upward movement in recent weeks. Siddhartha Khemka, Head of Retail Research at Motilal Oswal, expressed optimism about an eventual market recovery, citing support from global macroeconomics, stabilized interest rates, and a robust domestic economy after a brief pause.
However, Senior Technical and Derivative Analyst Subash Gangadharan from HDFC Securities indicated a potential further decline for the Nifty towards the next substantial support levels at 21,026-20,769 in upcoming sessions, with resistance expected at 21,325 for any potential pullback rallies. The downward trend wasn't isolated, as US stocks also closed lower on Wednesday following an abrupt mid-afternoon drop, interrupting Wall Street's impressive rally driven by declining interest rates and the cautious stance of the US Federal Reserve.
This global market shift also affected Asian shares, which were on track for declines on Thursday despite a slight increase in bond market activity due to expectations of reduced interest rates. Additionally, foreign portfolio investors were net sellers at Rs 1,322 crore on Wednesday, while domestic institutional investors purchased shares worth Rs 4,754 crore. This selling pressure from foreign investors added to the market's downward momentum.
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