For the third straight day on Thursday, the Indian stock market continued to decline, led by dismal global cues. The Nifty 50 index opened lower today following its largest intraday fall since Wednesday, June 13, 2022. After closing at 21,571.95 on Wednesday, the Nifty 50 index began at 21,414.20 on Thursday and fell as low as 21,285.55 during the day. Finally closing at 21,462.25, the index was down 110 points, or 0.51 percent.
In contrast to the prior closing of 71,500.76, the Sensex began at 71,018.86. It then dropped by roughly 835 points to reach the intraday low of 70,665.50. At 71,186.86, the index finally closed 314 points, or 0.44 percent, lower. The Nifty 50 index has lost 691 points over the course of the last three days, falling from 22,097 to 21,406 points. Over the past three days, the BSE Sensex has dropped from 73,128 to 70,891, a loss of 2,237 points, while the Bank Nifty index has lost 2,728 points in the last three sessions in a row.
Stock market analysts claim that there are five main causes for the decline in Indian stocks: the hawkish US Federal Reserve, the overbought situation in the Indian stock market, the rise in US bond yields, the disappointing Chinese economic statistics, and the tension in the Middle East. They said the five causes listed above are having an impact on stock markets throughout the world.
Avinash Gorakshkar, Head of Research at Profitmart Securities, commented, "Some other reasons that have triggered profit booking in the global stock market are the overbought condition at the Indian stock market and the rise in US bond yield in recent sessions." These are the other factors that are dragging down Dalal Street sentiment. According to Deepak Jasani of HDFC Securities, if the Nifty 50 index breaks below 21449, it may travel toward 21,000 in the next days, with 21,851 serving as a potential resistance.
Saurabh Jain, Equity Head, Research-Fundamentals at SMC Global Securities, offered the following advice to stock market investors: "While timing the market is difficult, it may be wise to progressively build positions during a market slump. Even though some stocks can see short-term losses, this could be a chance to bolster your portfolio if the fundamentals of a particular industry and set of firms hold up well. Rather from concentrating on ephemeral market swings, investors ought to think about purchasing fundamentally sound equities and industries."
