Business News | Sensex Tanks 1190 Points, Nifty Closes Below 24,000; Weak Asian Mkt and Lack of Global Cues
Get latest articles and stories on Business at LatestLY. Domestic stock markets saw selling pressure on Thursday due to the decline in tech heavyweight stocks, lack of major global cues, and weak Asian market.
Mumbai (Maharashtra) [India], November 28 (ANI): Domestic stock markets faced selling pressure on Thursday due to declines in tech heavyweight stocks, a lack of major global cues, and weak performance in Asian markets.
The Nifty 50 at the National Stock Exchange (NSE) closed at 23,914.15, down by 360.75 points, while the BSE Sensex ended at 79,043.74, declining 1,190.34 points. Both major benchmarks dipped over 1 percent during today's trading session.
Market experts attribute the downturn to investor concerns about US President-elect Donald Trump's policies, particularly regarding the trajectory of US interest rate cuts.
"The Indian stock market is under pressure today due to a combination of factors, including the absence of significant international cues, as the US stock market is closed. Domestic institutional investors (DIIs) are closely monitoring developments ahead of the Indian Union Budget 2025 next month. Foreign institutional investor (FII) selling, coupled with a strong US dollar, is dampening sentiment. Additionally, geopolitical concerns are contributing to the pressure," said Vinnaayak Mehta, Founder of The Infinity Group.
At the close of trading on the NSE, sectoral indices for Banking, Auto, Financial Services, FMCG, IT, Metals, Private Banks, Pharma, Realty, Healthcare, Consumer Durables, and Oil and Gas declined. However, sectoral indices for Media and PSU Banks traded in positive territory.
Major gainers during the session included Adani Enterprises, Shriram Finance, and State Bank of India, while key losers were SBI Life Insurance, Mahindra & Mahindra, Infosys, HDFC Life Insurance, and Bajaj Finance.
"External factors such as recent anti-dumping measures in the steel sector and trade disputes over China's solar energy components are further straining the Indian economy. Weak growth and the declining value of the rupee are driving foreign portfolio investor (FPI) outflows, which may persist until the rupee stabilises," said VLA Ambala, Co-Founder of Stock Market Today.
However, analysts cautioned against overinterpreting the market fall. Ajay Bagga, a market and banking expert, noted, "With F&O volumes down, expiry-day volatility is increasing. Given the shortened US trading week due to the Thanksgiving holiday, trading volumes are lower. Don't read too much into today's market decline. With the new series starting tomorrow, we expect the markets to rebound."
(ANI)
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