Updated February 28th, 2024 at 15:55 IST

Sensex plunges 800 points, Nifty closes below 22,000; all sectors end in red

The blue-chip NSE Nifty 50 ended 1.11% lower at 21,951.15 and BSE Sensex ended 1.08% lower at 72,304.88.

Reported by: Business Desk
Stock market crash | Image:Republic World
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Stock market news: Benchmark indices S&P BSE Sensex and NSE Nifty 50 closed Wednesday on a negative note amid lacklustre investor enthusiasm ahead of the release of US PCE index, a key inflation indicator influencing expectations of potential interest rate cuts by the Federal Reserve.

The blue-chip NSE Nifty 50 ended 1.11 per cent lower at 21,951.15 and BSE Sensex ended 1.08 per cent lower at 72,304.88.

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Pravesh Gour, Senior Technical Analyst at Swastika Investmart Ltd, said, "The movement of the stock market is complex and vulnerable to several influences. Corrections in the market are common. Investors with long-term horizons may see this as a buying opportunity. Ninety stocks are trading down as the Nifty Midcap index drops more than 1,000 points. There can be brief selling pressure as a result of investors taking profits following large gains."

"The market may have declined as a result of foreign institutional investors (FIIs) selling off large quantities of Indian stocks. The market also became nervous before so many economic indicators such as GDP data, PCE price index data, and manufacturing PMI numbers in the US. Another reason may be that the US government will partially shut down on March 1st without a spending bill," Gour added.

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Rupak De, Senior Technical Analyst, LKP Securities, said, "Nifty underwent a sharp correction during the day amid a strong sell-off. The index dropped below the 22,000 mark, indicating a growing weakness. Nevertheless, it managed to close just above the 21EMA in the daily timeframe. Observing the daily chart, the index has been navigating within a rising channel. A decline below 21,950 could potentially trigger a correction towards 21,800 in the near term. Conversely, a sustained trade above 21,950 might spur a recovery in the index towards 22,100."

Vinod Nair, Head of Research, Geojit Financial Services, said, “Indian markets were jittery, mirroring weak global markets. Global investors are awaiting the key US economic data like personal consumption expenditure, in anticipation of good forecast there is a fear that Fed rate cut may be delayed.”

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"Turmoil in China's property sector further impacted the Asian market trend. Profit booking weighed on Indian markets, fuelled by concerns about India's Q3 GDP growth potentially slowing to 6.6% from 7.6% in Q2. Rate-sensitive sectors faced pressure, contributing to broader market underperformance, led by FIIs selling," said Nair.

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Published February 28th, 2024 at 15:55 IST