Mumbai (Maharashtra) [India], December 21 (ANI): The stock market faced a significant decline on Thursday as the Sensex and Nifty opened in the red, catching investors off guard. Sensex opened 442.72 points down at 70,063.59, while Nifty opened 123.65 points down at 21,026.50.
Amidst the Nifty companies, seven witnessed advances, while 43 faced declines. Power Grid, ONGC, Reliance, Nestle India, and Britannia emerged as the top gainers, whereas Axis Bank, Cipla, Bajaj Auto, LT, and JSW Steel were the top losers.
The downturn follows a substantial sell-off on December 20, where the Sensex plummeted 930.88 points to close at 70,506.31, and the Nifty 50 concluded 302.95 points, or 1.41 per cent, lower at 21,150.15. This marked the most substantial one-day decline for the Nifty in a year.
Varun Aggarwal, founder and managing director, Profit Idea, highlighted market uncertainty as a key factor in the decline. He explained, Amidst record-setting markets and an overbought status, profit-taking triggered widespread selling across various sectors. Aggarwal also mentioned concerns over Covid cases and geopolitical tensions as contributing to the cautious stance of investors.
In the global scenario, US Treasuries maintained gains, while US stocks attempted to recover after new data led traders to assess the likelihood of a soft landing for the world’s largest economy. The Nasdaq Composite fell by 168.85 points, the S&P 500 experienced a drop of 51.50 points, and the Dow Jones Industrial Average declined by 343.76 points.
Despite the recent downturn, market analysts continue to remain bullish on sectors like IT, Pharma, Petrochemicals, and FMCG. Aggarwal stated, We continue to remain bullish on IT, Pharma, Petrochemicals, and FMCG sector. For leverage bets, it is advisable to keep trailing stop losses. He also advised investors to be prepared for a potential dip and mentioned that the support for Nifty lies at 20,677-20,291.
The stock market decline serves as a reminder of the need for caution in the midst of market uncertainties. It is important for investors to analyze potential investment opportunities and remain updated on market trends.
