- The domestic stock market saw weakness for the third day in a row on October 20.
- The 30-share BSE Sensex was down 231.62 points, or 0.35 percent, to 65,397.62.
- The Nifty 50 index fell 82.05 points, or 0.42 percent, to 19,542.65.
The domestic stock market saw weakness for the third day in a row on October 20, with benchmark indexes declining as a result of weakening global markets and lower-than-expected Q2 earnings reports.
It is anticipated that capital will leave emerging countries like India as a result of the spike in US bond yields, which are currently at 5%. The 30-share BSE Sensex was down 231.62 points, or 0.35 percent, to 65,397.62, while the Nifty 50 index fell 82.05 points, or 0.42 percent, to 19,542.65.
Sensex and Nifty
The market was volatile due to the additional uncertainty brought about by the tensions in West Asia and the US Fed Chair’s emphasis on the necessity of continuing monetary tightening.
Elevated US bond yields and rising oil costs will affect the domestic monetary climate and business operating indicators. Due in part to muted local and international demand as well as the inconsistent performance of blue-chip corporations, the industry is headed toward consolidation shortly.
The Nifty Smallcap 100 fell 0.79 percent, the Nifty Midcap 100 dropped 1.13 percent, and the NSE 500, the largest index, dropped 1.13 percent. Broader market indices also suffered. The majority of sectoral indexes saw reduced trades; the Nifty PSU Bank fell 1.57 percent, the biggest.
Rising to 2 percent, the biggest gainers in the Nifty50 club were Kotak Mahindra Bank, IndusInd Bank, and SBI Life Insurance. Gains were reported by Nestle India, TCS, and NTPC when they announced a stock split. With a drop of more than 2 percent, ITC was the biggest loser.
As a result of pressure in important industries and weak global cues, traders should continue to take a hedged approach and align their holdings accordingly. With the Nifty trading close to the 50-day Simple Moving Average (SMA), investors are still being forced to reduce their exposure to stocks due to the ongoing conflict in the Middle East.
