Share Market Down: Indian stock markets opened with a huge fall today on January 13, the first trading day of the week. The Sensex fell over 800 points to 76,580.57 in early trade, while the Nifty was down 246.35 points at 23,185.15. All sectoral indices were in the red, with PSU banks and real estate stocks suffering the most. Apart from domestic, weak global signals also played an important role in spoiling the mood of the stock market.
At around 9:20 am, the Sensex was trading at 76,580.57, down 798.34 points or 1.03 per cent. Whereas Nifty was down by 246.35 points or 1.05 percent at 23,185.15.
The Nifty Realty index fell 2%, while the Nifty PSU Bank index declined for the fourth consecutive day. Metal, auto, and FMCG sectors also remained under pressure. BSE midcap and smallcap indices were down 1% and 0.8% respectively. However, the IT sector performed better than these and declined by only 0.4%.
There were 4 main reasons behind today’s decline in the stock market-
1. Weak global signals spoiled the mood of the market
Weak global signals played an important role in spoiling the market mood. US job market data on Friday further weakened expectations of an early rate cut by the Federal Reserve. Due to this, the American stock markets also closed with a decline for the second consecutive week on Friday. Its effect was also visible on the Asian markets today and during this morning’s trading, almost all the major markets of the Asia-Pacific region were trading in the red.
2. Dollar index at its highest level since 2022
Meanwhile, the dollar index has now increased to its highest level since 2022. This has increased pressure on the Indian rupee. On Monday, the Indian rupee weakened and opened at a record low of 86.18 per dollar.
3. Continuous selling by FIIs
Continuous selling by foreign investors (FIIs) has shaken the market sentiment. So far in January, foreign investors have sold shares worth Rs 21,357.46 crore. FIIs have been net sellers of Rs 1,77,402.49 crore during the last three months. Experts say that the main reason behind the continuous selling by foreign institutional investors is the continuous rise in the dollar index, which is now above 109.
4. Rise in crude oil prices
There has been a continuous rise in the prices of crude oil for the last few days. On Monday morning, WTI crude oil prices were trading 1.83% higher at $77.97. Meanwhile, Brent crude prices were trading 1.74% higher at $81.15. This is their highest level in the last 3 months.
What do experts say?
Ajit Mishra, senior vice-president, Religare Broking, said, “The market remains under pressure, even a minor decline is creating selling pressure. Market volatility as the quarterly results season begins. “It is likely to intensify further.” “Especially in the absence of clear signs of trend change in the banking index, traders are advised to use the rebound as a shorting opportunity. Caution should be prioritized, along with strong risk management,” he said. Must focus on.”
He said that stock-based investment opportunities may arise with the quarterly results. You can see investment opportunities in defensive sectors like IT, FMCG and Pharma. At the same time, the broader market and other segments are likely to remain under pressure.
Nifty support at 23,200 and 23,000
Hardik Matali, Derivatives Analyst, Choice Broking, said, “After the start of trading in the fall, Nifty may get support at 23,200, after that at 23,000 and 22,800. On the upside, 23,500 may prove to be immediate resistance for it. After this, resistance can be seen at 23,600 and 23,800.
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