June 5th 2024.
The Indian stock market had a rough day yesterday, with the equity benchmarks losing almost 6 per cent. However, today, they opened on a positive note in the morning. But unfortunately, the initial gains did not last long as the markets took a turn for the worse.
As of 9:55 a.m., the Sensex was at 71,946, down 132 points or 0.18 per cent, while the Nifty was down 20 points or 0.05 per cent at 21,864. Not only the large-cap stocks, but even midcap and smallcap stocks were also facing a decline. The Nifty midcap 100 index was down 319 points or 0.65 per cent at 48,831, while the Nifty smallcap 100 index was down 122 points or 0.78 per cent at 15,582.
The fear index, India VIX, was down by 20.11 per cent at 21.37, indicating a decrease in market volatility. Among the sectors, FMCG, pharma, IT, auto, and consumption were performing well, while PSU bank, metal, realty, and energy were facing major losses.
Looking at the Sensex pack, we can see that HUL, Asian Paints, Nestle, Kotak Mahindra Bank, HCL Tech, and ITC were the top gainers, while L&T, Power Grid, NTPC, SBI, and ICICI Bank were facing the biggest losses.
Pradeep Gupta, Co-founder & Vice-chairman of Anand Rathi Group, provided some insight on the market situation. He stated that historical data shows that despite initial volatility, the market tends to recover and even thrive in the longer term. For example, after the 2014 and 2019 elections, the Indian stock market saw significant gains in the months following the election results. Gupta advised investors to focus on long-term strategies, such as maintaining a diversified portfolio and avoiding panic selling. He emphasized the importance of strong fundamentals and resilience against political changes in navigating market volatility.
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