Tremendous selling pressure was seen on Dalal Street on Thursday. On the day of Sensex expiry, the market gave a big shock to the investors. Since the beginning of trading, the market was seen trading with weakness and after fluctuations throughout the day, it closed in the red. Investors’ wealth declined by nearly ₹3 lakh crore in a single session, creating an atmosphere of fear and caution in the market.
At the end of trading, BSE Sensex closed at 83,313.93 with a fall of 503.76 points. At the same time, NSE Nifty fell by 133.20 points to the level of 25,642.80. Although the midcap index appeared to be recovering slightly from the day’s low, the overall market sentiment remained weak.
Pressure increased due to global signals
There was a clear impact of weak global signals on the Indian market today. A huge decline was seen in Asian markets. South Korea’s Kospi fell nearly 4 percent, while Japan’s Nikkei fell nearly 1 percent. Earlier, Nasdaq had slipped 1.5 percent in the American markets. There is a selloff in tech stocks globally, mainly due to concerns over rising costs and high valuations in the AI sector. Investors are now booking profits.
Q3 results did not inspire confidence
The results of the third quarter have not completely met the expectations of the market. The results of many companies were weaker than expected, which affected investor sentiment. With expectations related to the Budget and India-US trade deal already factored into prices, the focus has now returned to earnings and valuations. There is growing concern about high valuations in midcap and smallcap stocks.
Vigilance before RBI policy
Investors appeared cautious even before the results of RBI’s monetary policy meeting. Even though there is little expectation of change in interest rates, the market is keeping an eye on the central bank’s signals regarding growth, inflation and liquidity.
Rupee’s weakness also increased concerns
The weakness of the rupee against the dollar also put pressure on the market. The strengthening of the dollar index affected the sentiment of foreign investors, which appeared to put a brake on FII buying.
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