On the NSE, Nifty lost 261 points to close at 19,282. The day’s slide in the sensex was the biggest single-session loss for the index since July 20 this year.
Investors on Dalal Street, like in most other markets around the world, are keeping a close watch on the developments in West Asia, expecting a de-escalation in the Israel-Hamas war. Although crude oil prices have eased below the $90-per-barrel mark, they could spike again in case of any fresh triggers from the region, market players said. A higher rate of interest in the US is another big worry for the market.
According to Vinod Nair, head of research, Geojit Financial Services, increased apprehensions surrounding prolonged elevated interest rates fuelled a continued upward movement in the US 10-year yield. “Amid worries over moderation in growth on account of elevated interest rates and higher energy prices, heightened risk aversion was witnessed in the Indian mid- and small-cap space, banks, metals and energy stocks. While a period of consolidation in the short term seems certain, the extent of this phase will be shaped by global factors.”
In Monday’s market, 28 of 30 sensex stocks closed in the red with Bajaj Finance and M&M being the two winners. HDFC Bank, Reliance Industries, TCS, Infosys and L&T contributed the major part of the day’s slide in the index, BSE data showed.
At the close of the session, investors were poorer by almost Rs 8 lakh crore with BSE’s market capitalisation now at Rs 314 lakh crore, official data showed. On the positive side, despite the 1.3% slide in the sensex, foreign investors were net buyers in the market, at Rs 252 crore, BSE data showed. Domestic investors were even bigger net buyers at Rs 1,112 crore.
Technically on charts, Nifty is looking weak. The short term trend for it continues to be negative, said Nagaraj Shetti, technical research analyst, HDFC Securities. “Having moved below the support of 19,330, one may expect the Nifty to slide down to 18,825 levels… in the near term. Any attempt of upside bounce could encounter resistance around 19,400 levels.”