Stock market today: BSE Sensex plunges 400 points; Nifty50 below 22,000

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, opened in red on the first day of the trading week. While BSE Sensex plunged 400 points, Nifty50 was below 22,000. At 9:21 AM, BSE Sensex was trading at 72,262.99, down 401 points or 0.55%. Nifty50 was at 21,952.80, down 102 points or 0.46%.
Indian stock markets concluded the last trading session of a turbulent week on a positive note.Moving forward, market experts anticipate the equity markets to trade within a wider range, influenced by factors such as fourth-quarter corporate earnings, global developments, and news related to the Lok Sabha elections 2024.
“We expect this volatility to continue in the near term in the absence of any major positive trigger. Now till Nifty holds below 22000 zones, weakness could be seen towards 21700,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal.
Rupak De, Senior Technical Analyst, LKP Securities believes that the Nifty’s breakdown from the rising channel on the daily chart indicates a bearish sentiment, with resistance at 22,200. He recommends a sell-on-rally approach for traders as long as the Nifty remains below this level.
Globally, U.S. stocks managed to eke out modest gains on Friday, with all three major indices recording another week of advances. Investors focused on statements from Federal Reserve officials and looked ahead to the crucial inflation data scheduled for release in the coming week.
Asian markets, however, opened lower following data signaling a slowdown in China and reports of U.S. President Joe Biden’s plans to increase tariffs on certain Chinese goods.
Oil prices continued to decline on Monday, amid indications of weak fuel demand and comments from U.S. Federal Reserve officials that dampened expectations of interest rate cuts, which could potentially slow growth and curb fuel demand in the world’s largest economy.
Major currencies remained stable on Monday, with the U.S. dollar consolidating against its peers as market participants awaited U.S. inflation data to gauge the likelihood of interest rate cuts this year.
In terms of domestic institutional activity, foreign portfolio investors (FPIs) were net sellers, offloading shares worth Rs 6,994 crore on Thursday, while domestic institutional investors (DIIs) purchased shares worth Rs 5,462 crore. The Indian rupee remained range-bound and closed 3 paise lower at 83.51 against the U.S. dollar on Friday, as the support from positive domestic equities was offset by elevated crude oil prices.
Several companies, including Varun Beverages, Zomato, Jindal Steel, and Tube Investments, are set to announce their fourth-quarter earnings on Monday, which may provide further direction to the markets.


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