Markets slump on worries over Q4 earnings
By IANS | Published: April 26, 2024 04:56 PM2024-04-26T16:56:12+5:302024-04-26T17:00:08+5:30
Mumbai, April 26 The BSE Sensex fell more than 600 points on Friday amid worries over high valuations ...
Mumbai, April 26 The BSE Sensex fell more than 600 points on Friday amid worries over high valuations and lackluster Q4 earnings.
While the Sensex fell by 609.28 points to end at 73,730.16, the Nifty also declined 150.40 points to close at 22,419.95 on Friday.
Vinod Nair, Head of Research at Geojit Financial Services, said the unexpected surge of the US core PCE price index, accompanied by weaker-than-forecast GDP growth and Treasury yield spikes, impacted market sentiments.
Investors are concerned about the possibility of a looming recession in the US, he said.
Experts say that high market valuations and earnings disappointment are looming over the market.
“The Indian market lagged behind its Asian and European peers due to worries over lofty valuations and lackluster Q4 earnings, fuelling expectations of downward revisions for FY25 earnings," Nair said.
The Nifty move may indicate a bearish reversal.
Rupak De, Senior Technical Analyst, LKP Securities, said the Nifty remained under selling pressure throughout the session on Friday as the index failed to sustain above the crucial level of 22,500. On the daily chart, a dark cloud cover pattern is observed, indicating a potential bearish reversal.
Immediate support is situated at 22,300, below which the Nifty could extend its losses towards 22,000. On the other hand, the level of 22,500 might act as a technical resistance for the Nifty, he said.
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