As soon as the trading screens were switched on on the last trading day of the week, i.e. Friday morning, it seemed as if there was gloom on Dalal Street. Both the major indices, BSE Sensex and NSE Nifty 50, were seen trading in the red with heavy losses. Within the first few minutes, Sensex fell by more than 550 points, while Nifty also slipped below its important level of 24600. In fact, weak signals from foreign markets and heavy profit booking by investors are being considered as the main reasons behind this.
The market cheated as soon as it opened
Clear signs of huge weakness were visible from the very beginning of the market. Yesterday i.e. on Thursday, BSE Sensex closed at a strong level of 80,015.90. But this morning it opened with a loss of about 356 points at 79,658.99. In technical language, this is called ‘gap-down’ opening, which shows that there was heavy selling pressure even before the market opened. Even after opening this decline did not stop. In early trade itself, the Sensex fell by 0.69 percent (551.16 points) to the level of 79,464.74. This is a big blow for the common investors who invested their hard-earned money in the stock market, because the shares on which they had placed their trust fell in the initial deals.
Nifty is also in bad shape
Like the Sensex, the Nifty 50 index of the National Stock Exchange (NSE) also disappointed investors a lot. Nifty, which closed at 24,765.90 in the last trading session, opened today at 24,656.40 with a deep weakness of 109 points. There was such selling pressure in the market that within no time the Nifty slipped by 168.15 points or about 0.68 percent to the level of 24,597.75. Nifty falling below 24,600 clearly explains the current technical weakness of the market.
Where did you see the opportunity for profit?
Amidst this huge fall, if we talk about major sectors, then the big stocks related to banking, automobile and infrastructure worked to pull the market down rapidly. Among the big names, ICICI Bank fell the most by 2.60%. Apart from this, strong selling was also seen in Indigo (2.33%), Larsen & Toubro (1.97%), UltraTech Cement (1.51%) and Tata Steel (1.40%). Not only this, strong stocks like HDFC Bank, Maruti Suzuki, Adani Ports and Bajaj Finance were also seen struggling in the red.
However, amidst this all-round despair, the IT sector emerged as a savior for investors. Good buying was seen in IT stocks, where HCL Tech was in the green with impressive gains of 1.55%, Infosys by 1.48%, Tech Mahindra by 1.00% and TCS by 0.87%. Apart from this, Reliance Industries (0.96%) and Bharat Electronics Limited (0.77%) also tried their best to support the market to some extent.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.