The Indian stock market closed in the red with a huge fall on Wednesday, the third trading day of the week, due to the renewed tension between America and Iran and rise in crude oil prices. Meanwhile, the major benchmarks of the domestic market, Sensex and Nifty, recorded a decline of more than 2 percent. In this way the progress of the last several days came to a halt.
At the time of market closing, the 30-share BSE Sensex fell by 1,677.12 points or 2.15 percent to 76,503.60, while the NSE Nifty 50 slipped by 516.65 (2.12 percent) and closed at 23,882.05.
On Wednesday, the Sensex opened at 77,816.45, falling 364.27 points or 0.46 percent from its previous close of 78,180.72 and in the day’s trade it slipped 2.45 percent or 1,921.69 points and touched an intra-day low of 76,259.03.
At the same time, Nifty 50 opened at 24,259.55, falling 139.15 points or 0.57 percent from its previous close of 24,398.70 and in the day’s trading it touched the day’s low of 23,805.20 with a fall of 593.5 points or 2.43 percent. Thus, both the major indices recorded their worst performance in more than three months.
In the broader markets, the Nifty Midcap index fell 1.7 per cent and the Smallcap index fell 2.3 per cent.
At the same time, if seen sector wise, all the major indices closed in the red. Nifty PSU Bank and Nifty Bank were the worst performers. Shares of PSU banks declined by 2.56 per cent, followed by Nifty Bank (-2.40 per cent), Nifty Private Bank (-2.42 per cent), Nifty FMCG (-2.39 per cent) and Nifty Media (-2.33 per cent).
Apart from this, selling pressure was clearly visible in Nifty Oil & Gas (-2.13 percent), Nifty Auto (-2.06 percent) and Nifty Infrastructure (-2.06 percent). However, a decline of 0.87 percent was seen in Nifty Pharma and 0.68 percent in Nifty Metal, which was less as compared to other sectors.
In the Nifty 50 index, top losers included Jio Financial, InterGlobe Aviation, Shriram Finance, Maruti Suzuki and HUL, while gainers included ONGC & Bajaj Auto, Hindalco and Coal India.
According to data available on BSE, the selloff on Dalal Street resulted in a decline of more than Rs 8 lakh crore in the market capitalization (market cap) of BSE-listed shares. The market valuation of BSE-listed stocks was Rs 480.20 lakh crore on Tuesday, which has now come down to Rs 471.44 crore.
Tensions between the US and Iran escalated after US President Donald Trump said the ceasefire with Iran had ended but talks could continue after both sides attacked each other in the Strait of Hormuz.
Meanwhile, the Indian rupee fell 58 paise to close at 95.55 against the dollar on Wednesday, compared to 94.97 on Tuesday. At the same time, global crude oil prices increased by more than 6 percent, increasing concerns about energy supplies from West Asia.
International oil benchmark Brent crude rose 6.52 percent or $4.69 on Wednesday and was seen trading near $80 a barrel. Similarly, US benchmark West Texas Intermediate (WTI) rose more than 6 per cent or $4.85 to nearly $75 a barrel.
According to a market expert, the level of 23,780-23,750 will remain important as immediate support for Nifty in the coming trading sessions. If the index slips sustainably below this range, the downside in the short term may extend to 23,600 first and then 23,450. At the same time, on the upside, the range of 24,020-24,050 will be immediate resistance. Only if there is strength above this level, signs of recovery in the market can be strong.
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