Introduction
On 15th March 2024, the Indian stock market witnessed a significant plunge, with the BSE Sensex and NSE Nifty closing with substantial losses. Triggered by weakened global cues, selling pressure in sectors such as auto, oil & gas, and IT, and cautious sentiments in the broader markets, the market’s dip was a significant event. Let’s take an in-depth look at the day’s trading highlights and the factors influencing these market movements.
Market Overview
The BSE Sensex dropped 453.85 points or 0.62% to close at 72,643.43 while the NSE Nifty ended the day at 22,023.35, slipping 123.30 points or 0.56%. The broader market saw mixed reactions. While the BSE SmallCap index gained 0.25%, the BSE MidCap index fell 0.51%. BSE 500 also declined by 0.47%.
Top Draggers and Gainers
Leading the pack of losers in the Nifty50 basket were Mahindra & Mahindra, which fell by 5%, and Bharat Petroleum, which tumbled by over 4%. Other significant losers included Coal India, Tata Motors, and L&T, experiencing declines between 1.97% and 3%. In contrast, UPL, Bharti Airtel, HDFC Life, and Bajaj Finance emerged as the top gainers.
Sectoral Performance
The IT sector, influenced by US inflation figures impacting future rate trajectories, declined by 0.47%. In contrast, the Nifty metal and FMCG indices managed to close in green. The Nifty oil & gas index experienced a significant drop of 2%, and the Nifty auto index fell over 1.5%.
Institutional Activities
According to SBI Securities, both foreign institutional investors (FIIs) and domestic institutional investors (DIIs) were net buyers in the cash markets, purchasing equities worth ‚1 848.56 crore and ‚1 14,829.8 crore, respectively. This activity included a ₹17,000 crore deal in ITC.
Expert Views
The Nifty’s closure below the rising trendline indicated a return to market weakness. Immediate support for the Nifty is at the 50DMA, currently at 21,900. A drop below this level could lead to a steep decline in the index. On the upside, resistance is observed in the 22,200–22,250 range.
Global Market Influence
European shares were subdued due to a sell-off in global equities. Hot US inflation numbers weighed on sentiments, dampening expectations of a June interest rate cut. The pan-European STOXX 600 index was set for its eighth consecutive weekly gain.
Stress Test Impact
The market also responded to the recent SEBI directive for stress tests on mutual funds. The small- and mid-cap share indexes lost about $70 billion in combined market value after the directive, which heightened concerns about ‘froth’ and suggested mutual funds limit lump-sum investments.
Weekly Performance
On a weekly basis, the Sensex slipped 1.99 percent while the Nifty fell over 2 percent. The market’s performance was influenced by factors such as the Lok Sabha election nearing its end, fresh restrictions, heightened scrutiny of SEBI small-mid caps funds, and cross-border unrest.
Conclusion
The stock market’s performance on 15th March 2024 was influenced by various factors, including global cues, sectoral performance, and institutional activities. The stress test directive by SEBI also played a significant role in shaping the market’s movements. As the market continues to navigate these influences, investors and market observers await further developments.
Disclaimer
This article provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.