October 4th 2024.
The stock market in Mumbai experienced a turbulent day on Friday as both the Sensex and Nifty indices dropped by almost 1%. This sudden decline was largely driven by the FMCG, auto, and energy sectors as investors sold off their shares due to rising tensions in West Asia and continuous outflows of foreign capital.
According to market experts, the spike in global crude prices also played a significant role in dampening market sentiment. The uncertainty surrounding the supply of oil due to geopolitical tensions added to the already volatile situation.
The Sensex took a beating for the fifth consecutive day, falling by 808.65 points or 0.98% to close at 81,688.45. It was a rollercoaster ride throughout the day as the index swung between a low of 81,532.68 and a high of 83,368.32, a difference of 1,835.64 points. The Nifty also followed suit, dropping by 200.25 points or 0.79% to settle at 25,049.85. It too experienced a wild ride, hitting a low of 24,966.80 and a high of 25,485.05 during the trading session.
The biggest losers among the 30 Sensex companies were Mahindra & Mahindra, Bajaj Finance, Asian Paints, Nestle, Bharti Airtel, UltraTech Cement, Hindustan Unilever, ITC, and HDFC Bank. On the other hand, there were a few gainers such as Infosys, Tech Mahindra, Tata Motors, Axis Bank, Tata Consultancy Services, and State Bank of India.
It was also reported that Foreign Institutional Investors (FIIs) sold equities worth Rs 15,243.27 crore on Thursday, according to data from the exchanges. Meanwhile, markets in Seoul, Tokyo, and Hong Kong closed in the positive territory, while those in mainland China remained closed for a holiday. In Europe, markets were trading higher in mid-session deals, while the US markets ended lower on Thursday.
VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, shared his analysis on the situation, saying, "The last three days have witnessed huge FII selling of Rs 30,614 crore in the cash market. FIIs are shifting their funds from expensive India to cheaper Hong Kong in hopes that the monetary and fiscal stimulus measures taken by the Chinese government will boost their economy and improve the earnings of Chinese companies. However, it remains to be seen how this will play out."
Global oil benchmark Brent crude also saw an increase of 0.99% to reach USD 78.39 per barrel on Friday.
Thursday was no better for the market, as the Sensex dropped by a whopping 1,769.19 points or 2.10% to close at 82,497.10. During the day, it hit a low of 82,434.02, a decline of 1,832.27 points or 2.17%. The Nifty also slumped by 546.80 points or 2.12% to settle at 25,250.10.
Overall, it was a challenging week for the stock market, with various factors contributing to the decline. As the situation remains uncertain, investors are closely monitoring developments and trying to make informed decisions.
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