On October 3, Tuesday, the Indian stock markets began on a downbeat tone as the benchmark index, the Sensex, fell by 317 points. The Sensex was 65,511 at the opening bell, while the larger Nifty index was 19,537. This stock market’s downward trajectory indicates investors’ cautious attitude.
Maruti, State Bank of India, JSW Steel, HDFC Bank, Kotak Mahindra Bank, Tata Steel, Tata Motors, ITC, Reliance Industries, and NTPC were among the companies featured on the Sensex that suffered the most. On the other hand, Asian Paints, Hindustan Unilever, UltraTech Cement, and Mahindra & Mahindra were among the index’s gainers.
Shanghai was in the green zone in Asian markets, but Tokyo and Hong Kong were said to be trading down. On Monday, the US markets displayed a largely favorable trend.
The price of Brent crude, the benchmark for all crude oil, fell by 0.89 percent to US$89.90 a barrel. According to exchange data, foreign institutional investors (FIIs) reportedly sold stocks worth Rs 1,685.70 crore the previous Friday. In September, FPIs (Foreign Portfolio Investors) changed from buyers to sellers and withdrew more than Rs 14,767 crore from Indian shares. This change was largely attributable to the strengthening of the US currency, a continued rise in US bond yields, and a dramatic spike in the price of crude oil.
Mixed signals have been observed by analysts during the October series. October has often been a good month for the markets. However, the market faces substantial difficulties due to FIIs’ continuous sustained selling, the increasing dollar index, which just crossed 107, and the US 10-year bond yield, which recently hit a 16-year high of 4.68 percent. These elements are probably going to keep FIIs actively selling. On the plus side, the 5% decline in Brent crude prices may boost bullish market sentiment.
The BSE benchmark had increased by 320.09 points or 0.49 percent the Friday before to settle at 65,828.41. The Nifty finished at 19,638.30 while rising by 114.75 points, or 0.59 percent.
Principal points:
Gains on the Sensex: The BSE Sensex finished the day’s trading at 65,828.41, up 320 points or 0.49%.
The Nifty, a more general market index, rose: The Nifty closed at 19,638.30, up 115 points or 0.59%.
Rally for midcap and smallcap stocks: The BSE midcap index increased significantly by 1.3%, while the BSE smallcap index increased by 0.6%.
Performance by industry: Every major sectoral index, with the exception of information technology, finished the day in the black. Each of the indices for metal, power, oil & gas, PSU Bank, and healthcare recorded rises of 1% to 3%.
Conclusion:-
On Tuesday, the Indian stock markets began on a pessimistic tone as the benchmark index, the Sensex, plummeted by 317 points. Major laggards were Maruti, State Bank of India, JSW Steel, HDFC Bank, Kotak Mahindra Bank, Tata Steel, Tata Motors, ITC, Reliance Industries, and NTPC. Asian Paints, Hindustan Unilever, UltraTech Cement, and Mahindra & Mahindra were among the gainers. Shanghai was in the green zone in Asian markets, but Tokyo and Hong Kong were rumored to be trading down. On Monday, the US financial markets demonstrated a generally optimistic trend. The price of Brent crude, the benchmark for all crude oil, decreased by 0.89 percent to US$89.90 a barrel. Foreign Institutional Investors (FIIs) sold equities worth Rs 1,685.70 crore on the previous Friday, mainly attributable to the gain of the US currency, a sustained increase in US bond yields, and a spike in crude oil prices.
To settle at 65,828.41, the BSE benchmark rose 320.09 points, or 0.49%. The BSE Midcap and Smallcap index saw significant gains, and the Nifty increased by 115 points or 0.59%. Except for Information Technology, all significant sectoral indices finished the day in the black.
