September 30th 2024.
The stock market in Mumbai had a rough start to the week, with major indices falling by 1.5%. This was largely due to a heavy sell-off in popular stocks like Reliance Industries, ICICI Bank, and HDFC Bank. The ongoing geopolitical tensions in the Middle East and a dip in Japanese markets also contributed to the decline.
Experts pointed out that profit-taking after a significant rally and foreign fund outflows added to the overall negative sentiment in the market. The BSE Sensex, one of the key indices, dropped by 1.49% or 1,272.07 points to close at 84,299.78. At its lowest point during the day, it had plunged by 1,314.71 points or 1.53% to 84,257.14. The NSE Nifty also saw a decline of 1.41% or 368.10 points, settling at 25,810.85.
Among the 30 companies listed on the Sensex, Reliance Industries and Axis Bank saw a drop of over 3%. Other major losers included ICICI Bank, Nestle, Tech Mahindra, Mahindra & Mahindra, Maruti, Bajaj Finserv, State Bank of India, and Tata Motors. On the other hand, JSW Steel, NTPC, Tata Steel, Titan, and Asian Paints were among the few gainers.
Vinod Nair, Head of Research at Geojit Financial Services, explained that the global market was in turmoil due to rising geopolitical risks in the Middle East and the possibility of a hike in Yen interest rates that could discourage cross-country investments in stocks. However, the Chinese market saw a surge due to a large stimulus package and attractive valuations. In India, the pressure from global factors and high valuations led to a weaker market, but the metals sector is expected to perform well in the near future.
Meanwhile, in other parts of Asia, Seoul and Tokyo saw significant drops, while Shanghai and Hong Kong experienced gains. Japan's benchmark Nikkei 225 index fell by almost 5% on Monday, while the Shanghai Composite index rose by 8% after announcing fresh stimulus measures. European markets were also trading lower, and the US markets closed with mixed results on Friday.
According to exchange data, foreign institutional investors sold equities worth Rs 1,209.10 crore on Friday. The global oil benchmark Brent crude also saw a decline of 0.19% and was trading at USD 71.84 per barrel.
On Friday, the BSE Sensex had dropped by 0.31% or 264.27 points to close at 85,571.85. However, during the day, it had reached a new record intra-day peak of 85,978.25 after gaining 0.16% or 142.13 points. The Nifty also saw a dip of 0.14% or 37.10 points, settling at 26,178.95. Earlier in the session, it had touched an all-time intra-day peak of 26,277.35 after a gain of 0.23% or 61.3 points.
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