NEW DELHI: The equity markets closed on Thursday with a dip as selling pressure persisted in both primary indices and continued downwards after a slight rise during early trade.
The BSE Sensex closed at 77,580.31, a 0.14 per cent dip from the opening at 77,636.94. Nifty 50 settled at 23,532.70 points, a dip of 26.35 points or 0.11 per cent over the opening. During the day, after the indices saw slightly weak opening it rose over 254 points during early trade but then fell and continued downwards.
Akshay Chinchalkar, Head of Research, Axis Securities, said “Weekly momentum is deeply oversold but in strong downtrends that happens often, so the burden of proof is on the market to atleast take out the previous day’s high while holding support. Until that happens, bears will hold sway with the next important downside zone in the 23200 – 23300 area”.
Meanwhile, in sectoral indices on the National Stock Exchange, most opened lower except Nifty Auto, Nifty Metal, and Nifty Realty. Nifty Consumer Durables experienced significant selling pressure during initial trading.
Today’s quarterly result announcements are scheduled from major organisations including Hindustan Aeronautics, Hero Motocorp, Muthoot Finance, Bharat Forge, and Grasim Industries for their second-quarter results.
In broader Asian markets, Japan’s Nikkei 225 and South Korea’s KOSPI showed slight gains, whilst Hong Kong’s Hang Seng and Taiwan’s weighted index recorded declines at the time of reporting.
Ajay Bagga, Banking and Market expert, told ANI “Indian markets are continuing their down trend, impacted by downgrades to corporate earnings, higher then target inflation readings and a slower then target economic growth. FII outflows are continuing unabated. Bottom fishers are finding quicksand under their feet. We are more than half way through this correction, but a turn may take till February, given the seasonality and the Trump Inauguration coming up. We have to tighten the seat belts. The turn will come”.
Analysts indicated that the downward market trajectory might persist until February, with a potential reversal expected upon Trump’s assumption of office. The markets are currently influenced by the “Trump Anticipation Trade“.