Stock market opens flat in negative territory; Sensex-Nifty witness substantial declines
Apr 16, 2024
Mumbai (Maharashtra) [India], April 16 : The stock market opened on a flat note in negative territory on Monday, with both the Sensex and Nifty witnessing substantial declines for the second consecutive session.
The Sensex opened 521.65 points down, starting at 72878.13, while the Nifty opened 134.15 points down at 22138.35. Among the Nifty companies, 13 recorded advances while 37 faced declines in early trading.
Leading the gainers in the Nifty were Nestle India, Bharti Airtel, Titan, Eicher Motors, and SBI Life, while LTI Mindtree, TCS, Infosys, NTPC, and Bajaj Finance were among the top losers.
The negative sentiment prevailing in global markets due to escalating tensions in the Middle East weighed heavily on Indian benchmark indices.
Technically, the Nifty formed a negative candle on the daily chart with a gap-down opening, signaling a potential short-term reversal in the market trend.
However, the larger pattern of higher tops and bottoms remains intact on the weekly chart, with the index currently approaching the weekly 10-period Exponential Moving Average (EMA) around the 22,200 level, historically a supportive level.
Varun Aggarwal, founder and managing director, Profit Idea said, "In broader Asian markets, stocks declined, and currencies weakened against the dollar following mixed economic data from China."
He added, "Despite first-quarter GDP growth exceeding expectations, retail sales and industrial output figures fell short, adding to investor concerns."
The offshore yuan also faced downward pressure amid a strengthening dollar and cautious sentiment. Meanwhile, treasuries stabilized after bond yields surged on stronger-than-expected retail sales data in the US.
Oil prices rose as tensions escalated in the Middle East, with Israel vowing to respond to an attack by Iran. Volatility increased in US equities, with major indices dropping to multi-month lows.
Treasury yields spiked, driven by robust retail sales and banking activity in the bond market.
Overall, uncertainty persists in global markets, fueled by geopolitical tensions and economic data releases, underscoring the importance of risk management and vigilance for investors navigating turbulent waters.
