Business
Indian Stock Markets Dipped for the Fourth Day in a Row
Indian stock market benchmarks finished lower for the fourth consecutive day on Wednesday, July 24. The Sensex dropped by 280 points, or 0.35 percent, closing at 80,148.88, while the Nifty 50 fell by 66 points, or 0.27 percent, to end the day at 24,413.50.
The dip in these indices was mainly due to profit booking in key sectors, particularly in banking and fast-moving consumer goods (FMCG). Major stocks like Bajaj Finserv, Tata Consumer, and Britannia were among the top drags on the Nifty index.
Prashanth Tapse, Senior VP of Research at Mehta Equities, noted, “Profit-taking continued as investors cut their position in banking and automobile stocks, which led to a fall in key benchmark indices. However, the markets did manage to recover slightly from their lows thanks to selective buying support.”
Interestingly, while the big indices were struggling, mid and small-cap stocks performed quite well. The BSE Midcap index grew by 0.68 percent, and the Smallcap index jumped a remarkable 1.91 percent. This surge led to an increase in the overall market capitalization of firms listed on the BSE, rising to about ₹449.6 lakh crore.
Despite the overall bearish trend, market experts pointed out that the focus has shifted to Q1 earnings and global cues. “The budget has passed, leaving a mixed impression, and changes in capital gains tax could weigh on market sentiment in the short term,” said Vinod Nair, Head of Research at Geojit Financial Services.
The Nifty 50 index saw 30 stocks close in the red, with Bajaj Finserv falling by 2.09 percent, Tata Consumer down by 1.90 percent, and Britannia dropping 1.88 percent. Conversely, stocks like HDFC Life and Tech Mahindra recorded gains, with HDFC Life climbing by 4.36 percent.
Sector-wise, the Nifty Bank index fell by 0.89 percent, while the FMCG sector also took a hit, decreasing by 0.53 percent. On the brighter side, the Nifty Media index rose by 2.47 percent, showing some resilience amid the broader market slowdown.
According to Jatin Gedia, a technical research analyst at Sharekhan by BNP Paribas, the Nifty 50 was trading in a range that suggests a potential downward trend, with resistance seen around the 24,500 to 24,550 levels. “Expectations are that it could reach 24,200 to 24,000 in the short term,” he advised.