Stock market today, top reasons for market fall
Indian stock market extended its losses for the second consecutive day today. The global cues were not supportive in the morning. The market opened in negative and extended its early losses.
Indian stock market today
While closing, Sensex fell 642.22 points and closed at 36481.09. Nifty was down 185.90 points and closed at 10817.60 whereas Bank Nifty tanks 723.20 points and closed at 27131.80. Today both the Nifty mid and small-cap 100 index also declined 1.96% and 2.17% respectively.
Today in the stock market, heavy selling was seen across sectors and Index particularly in the second half of the day. The sectors like Auto, Banking and Real Estate closed almost 3% down today. The Banking, Auto, Real Estate and Metals stocks were worst hit declined almost 3% to 5% during the day.
The top five gainers in the Nifty50 stocks are Gail, Titan, HUL, Asian Paints, and Dr Reddy. The top five losers in the Nifty50 stocks for the day are Heromotor crop, Tata Motors, Axis Bank, Tata Steel, and Maruti Suzuki. In the Nifty midcap space PC Jeweler gained 11% and HEG share price declined 11%. In Nifty smallcap space Cox&Kings gained almost 5% and MMTC fell around 17% today.
The shares of State Trading Corporation of India (STC) plunge around 20% and MMTC tank 16% after the announcement of the government may shut down these firms. The government may revamped MMTC as per the news. The government is having a 90% stake in both the organization.
On the other side, Morgan Stanley has upgraded the Titan company from equal weight to overweight with a target of Rs 1300 per share from Rs 1110 per share. Titan Company share gained 0.84% at close today.
The top reasons why the stock market crashed today
Nervousness in Indian stock market ahead FOMC meeting: Indian market feels nervousness ahead of FED meeting which is going to conclude tomorrow. A 25bps rate cut is what the market is expecting from the FED. The important is market participants will focus on the statements and the commentary of FED meeting.
Weakness in Indian Rupee: The Drone attack on Saudi Arabia’s oil filed has sharply increased the crude oil price and depreciates the Indian rupee against the US dollar. The uncertainty of crude oil prices can further volatile the Indian rupee. As India is the biggest importer of crude oil, the weakness in the Indian rupee against the dollar can increase the fiscal deficits. This can again slow down the economic growth.
Nervousness ahead of US-China Trade talk: A much-awaited first level of discussion will begin between the US and China on trade talk this Thursday. The high-level discussion is scheduled for the next round in October.
GST meeting on Friday: The sudden geopolitical tension of Drone attacks on Saudi has increased the crude oil price. The increased crude price can increase the fiscal deficits which can slow down economic growth. Now the in this situation should the government cut the GST in auto sectors on 20th September this is a big question now.
Conclusion
Today Indian stock market fell because of the above issues. The market sentiment has become negative now. Tomorrow we may see some temporary pullback. To know technical views of Nifty and Bank Nifty future you may click here.
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