The stock market in Mumbai, India, fell further into the red at market close on October 3 due to unfavourable global signals.
Indian stocks saw the aftershocks of the international market upheaval that rippled across the world’s financial hubs.
The Sensex lost 323.09 points at market close, finishing at 65,505.32, while the Nifty lost 109.55 points, finishing at 19,528.75.
There were just 12 Nifty businesses that went up, while 37 went down, indicating widespread selling pressure.
Some industries showed resilience, as seen by the fact that many Nifty companies saw gains, including Bajaj Finance, Larsen & Toubro (LT), Titan, Bajaj Finserv, and Adani Ports.
ONGC, Eicher Motors, Maruti, Hindalco, and Dr. Reddy were the top five worst performers at market close as the bears continued to exert their dominance.
While the World Bank did not change its GDP growth prediction for India’s fiscal year 2023–24, it did note that India has shown resilience in the face of a difficult global climate.
According to World Bank senior economist Dhruv Sharma, “Our team expects India’s growth in this fiscal year, fiscal year 2324, to be 6.3 percent.” We made the same prediction six months ago, and it hasn’t changed. Growth is anticipated to be supported by healthy private investment, with additional support coming from the services sector. We attribute the drop in growth from last year’s 7.2% to slower consumer spending and more difficult external circumstances.
Stock indexes in India took a hit due to the widespread pessimism in international financial markets, which hit the oil and gas, auto, and pharma industries especially hard.
“Nifty closed in minus today on expected global sentiments,” said Profit Idea CEO and founder Varun Aggarwal. The index was pulled down by oil and gas, auto, and pharmaceutical stocks.
Nifty made two tries to finish lower than 19500 but ultimately ended up closing above that level. Numerous people put orders in between 19200 and 19300. How the market responds to the current low level of confidence throughout the world will be crucial to monitor,” Aggarwal said.
The Nifty came dangerously close to dropping below the key 19,500 mark twice during the trading day, but it was able to maintain its position above that level until the final bell.
Large amounts of put writing were seen between the 19,200 and 19,300 levels, which represented the cautious nature of traders and indicated some sort of support at those points.
“Traders should trade cautiously,” Aggarwal said. Don’t hold investments overnight, and instead choose clearly stated risks. Slowly and steadily, investors should buy excellent equities on price drops. The outlook for the IT, metal, finance, and banking industries is bright. The Indian market continues to have a favourable bias. Market bullishness will persist till prices rise over 18887.
In light of the persistently negative global attitude, analysts have urged traders to exercise extreme care and refrain from holding overnight positions in the market.
Market participants were advised to adopt risk-defined strategies.
