Share Market Highlights 16 April 2024: Sensex Drops 456 Points, Nifty Slips Below 21,450
Sensex, Nifty extend losses for third session on IT stock slide, West Asia tensions, rupee depreciation, foreign fund outflows.
On April 16, 2024, India's stock markets, represented by the Sensex and Nifty indices, faced a downturn for the third consecutive session. The decline was primarily attributed to a significant slide in information technology (IT) stocks, triggered by diminishing expectations of early rate cuts and concerns regarding the escalating conflict in West Asia.
The BSE Sensex experienced a notable drop of 456.10 points, marking a decrease of 0.62%, and closed at 72,943.68. Similarly, the NSE Nifty witnessed a decline of 124.60 points, representing a decrease of 0.56%, concluding at 22,147.90.
The negative sentiment prevailing in the market was exacerbated by a series of factors. Firstly, there were apprehensions about the possibility of interest rate cuts being delayed, which impacted investor confidence, particularly in IT stocks. Additionally, concerns regarding geopolitical tensions in West Asia contributed to the overall cautious outlook among investors.
The rupee also faced depreciation against the US dollar, closing at 83.57 (provisional), down by 14 paise. This depreciation was influenced by several factors, including the adverse trend in domestic equities and the strength of the US dollar against major currencies worldwide. Furthermore, recent outflows of foreign capital added to the downward pressure on the local currency.
Foreign fund outflows continued to weigh on investor sentiment, further exacerbating the downward trend in the stock market. This persistent selling pressure, combined with weak global cues, contributed to the overall bearish sentiment.
Despite the overall negative trend, there were notable developments in specific companies. Bharti Airtel reported a significant number of 5G customers in Tamil Nadu, indicating positive strides in its network expansion efforts. However, despite this positive news, Bharti Airtel's shares experienced a slight decline on the BSE.
Fitch Ratings affirmed the long-term issuer default ratings (IDRs) of Bank of India (BOI) and its subsidiary, Bank of India (New Zealand) Ltd, at ‘BBB-’, with a Stable Outlook. Additionally, Fitch affirmed BOI’s Viability Rating (VR) at ‘b+’. This affirmation provided some stability amidst the prevailing market uncertainty.
In terms of trading activity, a total of 3,908 stocks were actively traded on the BSE. Among these, 2,167 stocks advanced, while 1,621 declined, and 120 remained unchanged. Notably, some stocks hit 52-week highs and lows during the trading session, reflecting mixed performance across different sectors.
In summary, the Indian stock market faced significant challenges on April 16, 2024, with the Sensex and Nifty recording losses for the third consecutive session. The negative sentiment was driven by concerns over delayed rate cuts, geopolitical tensions, and foreign fund outflows, despite some positive developments in specific companies and affirmations by rating agencies
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