Domestic stock markets trade lower, impacted by continued selling pressure
I
ndian stock markets traded lower on Thursday, impacted by the continued selling pressure.After the end of the trade, the Nifty closed at 23,349.90, lower 168.60 points and BSE Sensex ended at 77,155.79, down 422.59 points.
Allegations made by the US Department of Justice and the US Securities and Exchange Commission against directors of Adani Green have put pressure on Adani Group shares. While stocks such as Powergrid, UltraTech Cement, Hindalco, Apollo Hospitals, and Grasim Industries remained major gainers on the National Stock Exchange (NSE), shares of Adani Enterprises, Adani Ports, SBI Life Insurance, State Bank of India, and NTPC were among the biggest losers during the trade. Adani Group has denied the allegations.
The sectoral indices at the NSE traded in the red, except for IT, private banks, and realty. Nifty broke its immediate support at 23,350 levels, making a low of 23,263, indicating continuing weakness. The momentum indicators on the weekly chart continue to show weakness in the index. Although the index recovered almost 100 points from its day's low, this may indicate another dead cat bounce. "Any bounce becomes an opportunity to sell the index," said Praveen Dwarakanath, Vice President of Hedged.in.
Experts noted that Indian markets are likely to remain soft in the near term. However, some changes may occur next week following the announcement of the state election results on Saturday. Ajay Bagga, a banking and market expert, pointed out that the escalation of tensions in the Ukraine-Russia war could weigh on markets.
"Nvidia results, Ukraine firing long-range missiles, and the Adani charges in a US court are dominating markets today," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services. He added that the uncertainty caused by these escalations is high, leading most market participants to adopt a wait-and-watch approach. However, he noted that any sharp slide in the market seems unlikely since the mother market, the US, has largely downplayed the escalation.
✔️ Domestic stock markets trade lower, impacted by continued selling pressure
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