May 30th 2024.
On Thursday, the stock market in Mumbai saw a decline of almost 1%, marking the fifth consecutive day of falling numbers. This was due to profit booking and the monthly expiry in the derivatives segment.
The benchmark indices, Sensex and Nifty, both saw a drop in their numbers. The BSE Sensex, which consists of 30 stocks, fell by 617.30 points or 0.83%, closing at 73,885.60. At its lowest point of the day, the Sensex reached 73,668.73 due to a significant decrease in the value of blue-chip stocks. The NSE Nifty also saw a decline of 216.05 points or 0.95%, ending the day at 22,488.65.
Just a few days ago on May 23, the benchmark indices had reached an all-time high, but since then, there has been a decline of around 2% in both Nifty and Sensex. This is mainly due to profit-taking and growing nervousness among investors ahead of the results of the Lok Sabha polls on June 4.
According to Vinod Nair, the Head of Research at Geojit Financial Services, the Indian market is mirroring the trends of the US market, which is experiencing an increase in treasury yields. This is causing concern among investors about global inflation and the delayed interest rate cut policy of the central bank.
Out of the 30 stocks in the Sensex, Tata Steel, Titan, Tech Mahindra, Wipro, Bajaj Finserv, Bajaj Finance, Nestle India, Tata Motors, and JSW Steel were the biggest losers. On the other hand, ICICI Bank, Axis Bank, HDFC Bank, State Bank of India, and Kotak Mahindra Bank saw gains.
Nair also pointed out that the broader market saw a weak trend due to profit booking and a lack of interest in holding short-term positions, as the exit poll is scheduled for the weekend.
Meanwhile, in other parts of the world, Asian markets such as Seoul, Tokyo, Hong Kong, and Shanghai closed with lower numbers. In Europe, markets were trading with gains, while US markets ended in the negative territory on Wednesday.
According to exchange data, Foreign Institutional Investors offloaded equities worth Rs 5,841.84 crore on Wednesday. The last phase of polling for the Lok Sabha elections is scheduled for June 1, and the results will be announced on June 4.
In the global market, the price of Brent Crude, a benchmark for oil, fell by 0.41% to USD 83.19 per barrel. On Wednesday, the Sensex had seen a decline of 667.55 points or 0.89%, closing at 74,502.90, while the Nifty dropped by 183.45 points or 0.80%, ending the day at 22,704.70.
Overall, it was a day of decline for the Indian stock market, with various factors such as profit booking, global trends, and the upcoming election results playing a significant role in the numbers.
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