Stock market downfall today: Sensex and Nifty face massive falls

The stock market saw another downfall today in the wake of a series of global and local apprehensions that investors have braved through.

However, when BSE Sensex lost 379.

48 points, or 0.

48%, to trade at 78,295.

70, the Nifty fell by 126.

15 points, or 0.

53%, to close at 23,757.

30, a lot of major stocks also faced huge falls in the range of nearly 3% and 2% each.

Mahindra & Mahindra (M&M) as well as Tata Steel fell drastically by 3.

12% and 2.

01%, respectively, causing heavy pressure on the market to fall even lower.

However, one major element bothering the market is on the rising US 10-year bond yields and strengthening dollar.

As the dollar went to a four-month high, the shadow of a rate hike by the US Federal Reserve has flared back, causing ripples in other emerging markets too, in countries such as India.

The kindling of investor fears about capital outflows after the rupee hit an all-time low of 84.

40 against the dollar helped unsettle the market further.

The US CPI inflation report was round the corner, so investors took a cautious approach.

Nomura India feels that broad-based tariffs would make an appearance in early 2025 as expectations of Trump’s “Red sweep” in various elections rise, fuelling US inflation.

Two Fed rate cuts that Nomura expects between 2024 and 2025 dampen hopes of monetary easing.

Stock market downfall today sees multiple stocks selling for low in India Selling by foreign portfolio investors (FPIs) is still weighing on Indian equities.

Tellingly, data showed that three out of four BSE-listed stocks were selling lower.

Other indices-cum-stock segments didn’t do much better-offering a parting glance at 2013.

Small-cap and mid-cap indices too did not fare well, dipping by 1.

77 per cent and 1.

41 per cent, respectively.

V K Vijayakumar, chief investment strategist at Geojit Financial Services said a strong dollar index and high US bond yields were significant headwinds for Indian markets.

High US yields will encourage outflows from emerging markets like India, and more volatility in the near term is on the cards.

Is it right time to invest? He advises investors to remain sidelined, especially the high-growth sector constituents where cement, metals and petroleum are facing growth constraints.

He recommends instead focus on sectors which have better prospects to grow like banking, pharma, IT and new age digital companies that may offer a relative sense of stability while the market remains volatile.

Also, see: Latest Indian gold price continues to hover at one-month low: What are today’s rate?.