Current state of the Today’s stock market performance: Tuesday, August 6, saw investors remain cautious due to prevailing concerns over a weakening economy in the US, instability in the Middle East, and the markets’ rich valuations in general.
As a result, the benchmarks of the Indian Today’s stock market performance, the Sensex and the Nifty 50, expanded their losses into the third consecutive session. The majority of the day saw key indices trade in the green after rising at opening. However, because of profit booking in the final hour of trading, they were unable to maintain altitude and finished in the negative.
The Today’s stock market performance Sensex started the morning at 78,981.97, up from its ending value of 78,759.40, and soared more than 1% to reach 79,852.08 during the course of the morning. On the flip side, the Nifty 50 began the day at 24,189.85, up from its ending value of 24,055.60, and gained more than 1% to take back the 24,382.60 mark.
At 78,593.07, the Sensex eventually finished the day down 166 scores, or 0.21 percent. At 23,992.55, the Nifty 50 finished 63 points, and 0.26 percent, down.
The small- and mid-cap indices did not do as well as the benchmarks. While the Smallcap index finished 0.57 percent lower, the BSE Midcap index dropped 0.71 percent.
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Investors lost around ₹2 lakh crore in value in a single session as the total market capitalization of the companies listed on the BSE decreased to about ₹440 lakh crore from nearly ₹442 lakh crore in the previous session.
Like the Asian markets, the Today’s stock market performance to recover. But the impetus was fleeting, and it eventually stopped above the 24,000 threshold. Vinod Nair, head of research at Geojit Financial Services, noted that investors are keeping an eye on the strengthening Yen, the disappointing US economic statistics, and the escalating geopolitical concerns.
“At this time, investors are being cautious and gravitating toward defensive industries like FMCG, IT, and pharmaceuticals. To lessen the chance of a recession, the Today’s stock market performance is anticipating a drop in crude prices as well as possible rate cuts from the US Federal Reserve and the RBI, according to Nair.
Of the Nifty 50 equities, 21 ended the day at or above the closing price, and 29 were lower. The top gainers in the index at closing were Today’s stock market performance of Britannia (up 2.81 percent), JSW Steel (up 2.35 percent), and Tech Mahindra (up 1.74 percent). Conversely, the index’s top losers were shares of BPCL (down 1.84 percent), SBI Life (down 2.43 percent), and HDFC Life (down 4.28 percent).
Fears of an impending US recession sent the Today’s stock market performance into meltdown during the previous day, following lower-than-expected July payroll figures. According to experts, it is premature to declare that the greatest economy in the world is headed for a recession. The US economy is not clearly exhibiting any signs of a severe downturn, even though there may be some indications of a slowdown.
It seems that the issues about the US recession are a little overstated and premature. Investors don’t have to freak out. It is possible to over time collect high-quality largecap stocks,” said V K Vijayakumar, Chief Financial Strategist at Geojit Financial Services.
Equinomics Research Private Ltd.’s founder and chief research officer, G. Chokkalingam, concurred that it is premature to worry that the US economy will enter a recession. There isn’t any conclusive evidence pointing to a quick and severe collapse of the US economy.
Experts noted that, with the exception of Chinese markets, the high valuation globally was the main cause of the market fall. The disparity between market capitalization and liquidity was glaring.
Now, all eyes are on the Reserve Bank of India’s monetary policy decision. The Monetary Policy Committee (MPC) meeting is currently taking place and the outcome is expected on August 8. The majority of experts predict that the Reserve Bank of India will keep repo rates unchanged. A few, however, think the RBI’s policy stance may change.
The Today’s stock market performance fundamental configuration points to some degree of hesitancy. On the half-hourly chart, the Nifty 50 created an inverted hammer formation, according to Rupak De, Senior Mechanical Analyst at LKP Securities, indicating that there could be positive reversal of a lesser degree. The index appears to have found stability above its low from yesterday as well.
It is possible that the Nifty will either rise to 24,400–24,440 (21EMA), where pressure for selling is expected to reappear, or it might fall immediately to 23,965 (50EMA)/23,650, according to De.
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