New Delhi [India], May 9, 2024 : Indian stock indices slumped sharply Thursday intraday after a broad sell-off in all sectoral indices.
Sensex slipped 1,062 points to close at 72,404 points, and Nifty slipped 345 points to close at 21,957 points. Among sectors, almost all the major sectoral indices witnessed profit booking at higher levels but energy and metal indices lost the most, shedding nearly 3 per cent.
Analysts asserted that a strong US dollar, uncertainty in Lok Sabha elections outcome after a decreasing voter turnout trend seen so far in the three phases that went to vote, and a profit booking after the recent rally hurt the markets.
Vinod Nair, Head of Research, Geojit Financial Services, said, "The broader market witnessed volatility, underscoring caution on account of Q4 earnings and general election uncertainties, which led investors to stay on the sidelines."
"We expect the trend to continue in the short term as the market slid below the physiological level of 22,000. The global indices are trading with mixed cues ahead of the BOE policy meeting later today and US inflation figures due next week," Nair added.
Also, continued selling by foreign portfolio investors (FPIs) and lower-than-expected earnings by some of the market moving corporate majors also weighed on investor sentiment, analysts said.
Foreign portfolio investors (FPIs) have turned net sellers in Indian stocks lately. Foreign portfolio investors (FPIs), who continued to remain net buyers for the third month until mid-April, have cumulatively sold stocks worth Rs 8,671 crore during the month, National Securities Depository Limited (NSDL) showed. So far in May, they have sold stocks worth Rs 10,413 crore.
"The ongoing increase in the volatility index suggests that the current market sentiment may persist, potentially leading Nifty to test the 21,800-21,850 zone soon. Traders are advised to adjust their positions accordingly and prioritise stock selection," said Ajit Mishra, SVP, Research, Religare Broking Ltd.
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