Stock market faces downturn amid global uncertainty
Feb 27, 2024
Mumbai (Maharashtra) [India], February 27 : The stock market witnessed a downturn for the second consecutive trading day, reflecting global market uncertainties.
Both the Sensex and Nifty indices opened lower on Tuesday, signaling cautious investor sentiment amid prevailing market conditions.
At the opening bell, the Sensex was down by 119.20 points, starting at 72,669.73, while the Nifty faced a decline of 32.50 points, opening at 22,097.30.
The market breadth on the Nifty was mixed, with 27 stocks advancing and 23 declining.
Among the Nifty companies, notable gainers included TCS, Eicher Motors, SBI Life, Cipla, and HCL Technologies, while ONGC, Axis Bank, Power Grid, Bharti Airtel, and M&M were among the top losers.
Varun Aggarwal, founder and managing director, Profit Idea said, "Market analysts anticipate a cautious trading session, in line with global market trends, as both the Sensex and Nifty 50 indices indicate a subdued opening. The Gift Nifty's performance also suggests a lackluster start for the benchmark index, hovering around 22,115 levels, slightly below the previous day's Nifty futures closing of 22,138".
He added, "Monday's trading session saw Indian indices extending losses, initially driven by mixed global cues. Although there was an attempt to recover losses later in the day, sectors such as IT, Metal, and Banks faced selling pressure, offsetting gains in Energy and Auto sectors".
Market sentiment remained negative, reflected in the breadth of trading activities, with more declining shares (1552) than advancing ones (1045) on the NSE.
The volatility index, India VIX, rose by 4.19 per cent to reach 15.60. Both the broader markets, represented by Nifty Mid and Smallcap indexes, mirrored declines similar to the major indices, closing lower by 0.36 per cent and 0.26 per cent respectively.
The Sensex concluded Monday down by 352.66 points (0.48 per cent) at 72,790.14, while the Nifty fell by 90.65 points (0.41 per cent) to settle at 22,122.05.
Looking ahead, the primary trend for Nifty Futures remains positive, with specific ranges identified for potential profit booking and short covering scenarios.
If Nifty futures sustain above 22,185, a trading range of 22,224-22,265-22,311 is anticipated. Conversely, sustaining below 22,090 could lead to a range of 22,058-22,018-21,980 during the trading session.
Investors are advised to monitor market developments closely and exercise caution amidst prevailing uncertainties.
