Stock Market Crash: RIL selloff drags down Sensex, Nifty, other indices; Tata Steel, PNB, ICICI Lombard stocks bleed
The BSE Sensex shed 769 points after the closing bell and closed at 36,562 levels while the Nifty-50 index nosedived 225 points and closed at 10,797 levels.
Stock Market News Today: On account of weak global cues and negative FIIs, the Indian indices witnessed heavy selloff in the intraday trading. The BSE Sensex shed 769 points after the closing bell and closed at 36,562 levels while the Nifty-50 index nosedived 225 points and closed at 10,797 levels. Bank Nifty index crashed 603 points and closed at 26,824 levels.
Tata Steel, Indian Bank, PNB or Punjab National Bank, ICICI Lombard, MCX and Reliance Infrastructure shares were among the major losing stocks after the closing bell while Reliance Power, IDBI Bank, JK Tyre & Industries, CG Power and Industries and Reliance NipLifeAML share prices were among the major gaining shares in the intraday trade.
Nagaraj Shetti, Technical Research Analyst at HDFC securities said, "After showing a smart upside recovery on Friday, the Nifty slipped into a sharp weakness today and closed lower. We observe a formation of long bear candle, which indicates a continuation of down trend in the market. Today's downside momentum seems to have gathered strength, after showing a reasonable weakness from the hurdle of 11,150 levels in the previous 2-3 sessions." He said that technically, the Nifty witnessing a sharp weakness today, post upside recovery of Friday, signals that the bears are still actively participating in the market. Next important supports to be watched at 10,637 levels, which is a swing low of 23rd Aug, where one may expect another attempt of upside bounce from the lows. Immediate resistance is placed at 10,870 levels.
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Dr. Joseph Thomas, Head of Research- Emkay Wealth Management said, “The sharp fall in the Q1 GDP growth to 5 per cent and the weak core sector growth are the key factors that have caused a fall in the markets as it opened after a long weekend. The continuing negative global cues, the raging tariff war between the US and China, and the likely sluggishness in the economic fortunes of economies around the world have also been behind the rot in the markets here as well as elsewhere. Weak domestic consumption especially rural consumption has resulted mainly from low employment levels and non-availability of finance, which are issues that call for immediate measures to salvage the situation.”
Speaking on the current market outlook Prakash Pandey, MD & CEO at Plutus said, "The Nifty has strong support at 10,750 and is currently trading in the range of 10,750 to 11,200. Much depends upon the tomorrow opening. If the market opens above 10,750 and sustains above then we can expect a recovery in the Indian stock markets. However, if it opens on the lower side and fails to sustain above 10,750 then we can expect the further bearish trend in the markets.
Metal sticks received the maximum beating today as the BSE Metal index went down 3.23 per cent after the closing bell. Metal major Jindal Steel & Power share price crashed 4.35 per cent, shares of JSW Steel dipped 3.36 per cent, Hindalco Industries shares went down 3.66 per cent, Tata Steel stock price went down 4.49 per cent while Vedanta stocks went off 3.41 per cent.
Energy stocks also witnessed heavy selloff pressure throughout the intraday trade as the BSE Energy index went down 2.98 per cent after the closing bell. Energy major and Sensex heavyweight Reliance Industries share price crashed 3.87 per cent, shares of Oil And Natural Gas Corporation or ONGC went down 3.05 per cent, Indian Oil Corporation Ltd or IOCL shares tanked 4.08 per cent while Coal India Ltd or CIL share price went down 2.28 per cent.
Among major Asian markets, the Japanese Nikkei 225 index ticked 0.02 per cent higher, South Korean Kospi went down 0.18 per cent, Hang Seng dipped 0.39 per cent while the Shanghai markets went 0.21 per cent northward.