Sensex, Nifty slide further as bears stall mkt bull run

BSE Sensex, Nifty50 continue to be hit by bear attack: The stock market today opened in red, with both benchmark indices – BSE Sensexand Nifty50 – tanking 0.5% in opening trade. While Sensex slipped 400 points at the start of the trading day, Nifty50 slipped below the 21,000 mark. At 9:17 AM, BSE Sensex was trading at 70,156.23, down 350 points or 0.50%.Nifty50 was at 21,034.45, down over 110 points or 0.55%.
Investors in the stock market lost almost 9 lakh crore with the BSE Sensex crashing over 930 points in trade on Wednesday. The bear attack took market experts by surprise, though many said that since the market has moved up steadily in the last few weeks, profit booking was to be expected.
Domestic equities began on a positive note on Wednesday, but profit booking at higher levels resulted in both indices losing more than 1%. Siddhartha Khemka, Head – Retail Research, Motilal Oswal said that overall, he remains optimistic about the market and anticipates a recovery after a brief pause, supported by global macroeconomics, as well as stabilizing interest rates and a strong domestic economy.
Subash Gangadharan, Senior Technical and Derivative Analyst, HDFC Securities believes that Nifty could decline towards the next major support level at 21,026-20,769 in the coming sessions. Any pullback rallies could face resistance at 21,325, he added.
US stocks closed lower on Wednesday after a sudden mid-afternoon drop ended Wall Street’s impressive rally, driven by falling interest rates and the US Federal Reserve’s cautious stance.
Asian shares were poised for declines on Thursday as a global stock market rally stalled, despite a slight increase in bond market activity due to expectations of lower interest rates.
Foreign portfolio investors were net sellers at Rs 1,322 crore on Wednesday, while DIIs purchased shares worth Rs 4,754 crore.