Investors witnessed tremendous fluctuations in the stock market on Thursday. Sensex and Nifty, which started trading with great momentum in the morning, made strong gains during the day, but later suddenly selling pressure increased. The result was that the Sensex fell by about 700 points from its day’s high (77,800), while the Nifty also slipped by about 200 points from the day’s high (24,260). However, in the end both the major indices managed to close with slight gains.
Good buying was seen in the market during trading, but in the afternoon the atmosphere changed due to profit booking and heavy selling in some sectors. Compared to yesterday, Sensex closed at 77,100 with a gain of 109 points and Nifty closed at 24,056 with a gain of 34 points. Despite this, the sharp fall from the day’s high made investors cautious.
Why did the market fall?
The biggest reason for the decline in the market was the weakness in the metal sector. Nifty Metal index fell more than 1%. Shares of Hindustan Zinc fell more than 3%, while Vedanta and National Aluminum Company (NALCO) also declined around 3% each. The prices of aluminum and silver have fallen in the London Metal Exchange. Apart from this, the strengthening of the US dollar and the fear of the US Federal Reserve keeping interest rates high also increased the pressure on metal companies.
Heatmap of Nifty Metal and Sensex
IT, energy and power shares also increased pressure
Apart from metal, selling was also seen in shares of IT, energy, oil and gas and power sectors. Big stocks like Tech Mahindra, Infosys, HCL Tech, PowerGrid, NTPC and Bharat Electronics closed in the red. The weakness of these sectors stopped the market rally.
Auto and FMCG sector took the lead
While there was weakness in many sectors, on the other hand auto and FMCG stocks supported the market. There was a spectacular rise in the shares of Mahindra & Mahindra (M&M), Maruti Suzuki and Indigo. The FMCG index gained about 0.7%, while the auto index gained more than 2%.
Midcap and smallcap shares also slipped
The risk taking capacity in the market also appeared weak. Both Nifty Midcap and Smallcap indices closed around 0.5% lower. This clearly indicated that investors were booking profits on a large scale.
Also read- Gold became cheaper by ₹ 7500 in 3 days, silver also fell by ₹ 21,700; Check today’s latest rate
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
