Why the market down today | Indian stock market today
Why the market down today – here is the reason
Why the market down today: Indian stock market today opened a gap up amid positive cues from the global peers. The domestic markets continued to trade higher in the morning session with the help of positive Asian market cues and on the back of buying in Banking, Metals, and IT stocks.
In the second half, the market was down sharply and closed in the red today as domestic traders were cautious ahead of the CPI and IIP data scheduled later today and avoid taking an overnight position. However, investors remain cautious as government bond yields in the United States and Europe also started rising again on Friday.
Earlier in the morning traders remained energized after a private survey stated that India among the world’s top 5 investment destinations. According to the survey, the United States has extended its lead over China as the top growth market that CEOs are looking to invest. Germany remains in the third spot. The United Kingdom has taken over India to occupy the 4th position after Brexit while India has managed to remain in the top 5 ahead of Japan.
On the global front, Asian markets were closed mostly in the green today after U.S President Joe Biden signed a $1.9 trillion stimulus bill into law. European markets are trading lower as the bond yield started rising again on Friday. The US future indices Dow future is trading flat whereas Nasdaq future is trading lower at 4 pm IST
Indian stock market index today
At the close, Nifty fell 143.85 points or 0.94% and finished at 15030.95 levels while Sensex was down 487.43 points or 0.95% and closed at 50792.08 levels. The Bank Nifty on the spot price fell 441.65 points or 1.22% and ended at 35496.65 levels.
The Nifty midcap and smallcap 100 indices closed mixed today. The Nifty midcap index was down by 104.50 points or 0.43% and closed at 24115.60 levels. The smallcap index gained 43.55 points or 0.52% and finished at 8482.90 levels.
The top five gainers in the Nifty50 index were BPCL, IOC, Power Grid, JSW Steel, and Titan Company. The losers in the Nifty50 index were Bajaj Auto, Hindalco, SBI Life, HDFC Life, and Maruti Suzuki. The most active stocks in the Nifty50 index were SBI Life, Reliance, and Tata Motors.
On a sectoral basis, all major sectors closed in the red today. The sectors that dragged down the market today were Banking, Automobiles, Oil & Gas, and Insurance.
Indian stock market on a weekly closing
Indian stock markets closed marginally higher during the truncated week. The markets were observed holiday on Thursday due to Maha Shivratri. On a weekly basis, markets started with a positive note on Monday but on Friday’s market correction erased all weekly gains.
Sensex on a weekly basis gained 386.76 points or 0.77% and closed at 50792.08 levels while Nifty was up 92.85 points or 0.62% and ended at 15030.95 levels. The Bank Nifty on the spot price closed higher by 268.5 points or 0.76% on a weekly basis and finished at 35496.65 level.
The midcap and smallcap indexes outperformed the benchmark indices and closed marginally higher on a weekly basis. The Nifty midcap index up by 37.45 points or 0.16% and closed at 24115.6 levels. The small-cap index closed higher by 115.05 points or 1.37% and ended at 8482.9 levels
F&O market updates today: Nifty & Bank Nifty futures
The Nifty futures share price today opened at 15326.10, it made a gap up opening of 152.8 points. It has touched an intraday high at 15375 and a day’s low at 14961.55
The Nifty futures share price has given a movement of 413.45 points. In the end, it fell 172.9 points or 1.14%, and closed at 15036.40 levels.
The Bank Nifty futures share price opened at 36505.25 It made a gap up opening of 497.5 points today. It has touched an intraday high at 36554 and a day’s low at 35206.55
During the day, the Bank Nifty futures share price has given a movement of 1347.55 points. In the end, it plunged 549.75 points or 1.53%, and closed at the 35458 levels.
CPI and IIP Data of India
India’s CPI inflation rate rose to 5.03% in February as per the government data released post-market hours. This is compared to 4.06% recorded in the month of January and was 6.58% in February 2020. The high inflation is due to the steep rise in food prices in the month of February.
According to the data released by the Ministry of Statistics and Programme Implementation (MoSPI), the Index of Industrial Production (IIP) contracted -1.6 in January 2021
Conclusions:
Indian stock markets snapped the 3-days winning streak. Indian markets opened strong but could not hold the early gains. The rising bond yields again, fear of inflation, and cautiousness ahead of the CPI and IIP data dragged down the market today.
Going ahead, the Indian stock market will first react to CPI and IIP data on Monday. You can follow our report “the key factors that are going to impact the stock markets” tomorrow.
You may also like to read, Intraday Trading books to make money from Stock Markets
Stock market holidays 2021-Indian & Global markets
Happy weekend !!
Editor’s Desk
