Sensex Today Tanks 735 Points; IT & FMCG Stocks Drag

After opening on a negative note, Indian share markets continued the downtrend as the session progressed and ended the day weak.

Following weak global Asian stock markets after a trend reversal by the Central Bank of Japan, the Indian stock market witnessed sharp selling pressure during Tuesday deals.

At the closing bell, the BSE Sensex stood lower by 735 points (down 1%).

Meanwhile, the NSE Nifty closed lower by 242 points (down 1.1%).

Bajaj Auto, Titan, and Hindalco were among the top gainers today.

TCS, BPCL, and Cipla on the other hand, were among the top losers today.

A secondary market is a marketplace where securities, such as stocks and bonds, are bought and sold among investors after their initial issuance in the primary market. 

The GIFT Nifty ended at 21,890 down by 246 points.

Broader markets ended the day lower. The BSE Mid Cap ended 1.4% lower and the BSE Small Cap index ended 1.1% lower.

Sectoral indices are trading negatively with stocks IT sector, FMCG sector, and oil & gas sector witnessing the most selling pressure.

Shares of Crisil and Bharti Airtel hit their respective 52-week highs today.

The rupee is trading at 83.04 against the US$.

Gold prices for the latest contract on MCX are trading flat at Rs 65,540 per 10 grams.

Meanwhile, silver prices are trading 0.3% lower at Rs 75,244 per 1 kg.

Here are five reasons why Indian Markets are falling today

#1 Broader Markets Selling

In the last month, the mid-cap index has corrected more than 5.60 percent while in March 2024, the situation is more alarming. Likewise, the small-cap index has crashed by around 10 percent in the last one month.

#2 FOMC Meeting

Buzz for the US Fed rate cut has been hit badly after the hotter-than-expected US inflation data and PPI print last week. So, the market is expecting the announcement of further continuation of the higher interest rate in the upcoming US Fed's FOMC meeting.

#3 Weak Global Cues

A gauge tracking Asia's benchmarks remained on the back foot, dragged down by losses of more than 1% each in Hong Kong's technology shares and South Korean equities. Meanwhile, contracts for US shares pointed to losses. Japan's Nikkei share average swung between small gains and losses after the Bank of Japan on Tuesday announced an end to its long-running ultra-accommodative stimulus programs, as widely expected.

#4 IT Stocks Drag

IT major TCS emerged as the top Sensex laggard, experiencing a 3% decline. This dip coincided with 2.02 crore or 0.6% shares changing hands in a block deal on the counter. Other IT counters - HCL Tech, Wipro, and Infosys - also traded with cuts, weighing on the index.

#5 Oil on Boil

Oil prices edged down early on Tuesday after gaining in the previous trading session, due in part to the prospect of rising supply from Russia as well as the possibility of slower-than-expected downstream demand in sectors such as jet fuel. Despite the dip, Brent crude remains above $86 per barrel.

Why Patanjali Foods Share Price is Falling

In news from the FMCG sector, the Supreme Court has asked Baba Ramdev and Acharya Balkrishna to appear personally before the court to respond to contempt proceedings initiated for continuing to run misleading advertisements that claimed to permanently cure several diseases.

The Court also noted that Patanjali continued misleading advertisements despite the assurance given by Patanjali's counsel last November before the Court that it would refrain from making such advertisements.

In February, the apex court issued a contempt notice against Patanjali Ayurved and its Managing Director Acharya Balkrishna for publishing advertisements of products in violation of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 and its Rules.

In November 2023, the apex court reprimanded Patanjali Ayurved for continuing to publish misleading claims and advertisements against modern systems of medicine. Justice Amanullah went on to issue a stern warning of imposing a sum of Rs 10 m in case such advertisements are continued.

The IMA filed the writ petition, raising concerns over what it termed a "continuous, systematic, and unabated spread of misinformation" regarding allopathy and the modern system of medicine. The petition also asserted that Patanjali's misleading advertisements disparage allopathy and make false claims about curing certain diseases.


RPP Infra hits the upper circuit. Here's why

Moving on to news from the engineering sector, the RPP Infra Projects share was locked in a 5% upper circuit in the early trade on 19 March after the company announced receiving a Rs 94.13 crore order from State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT).

The company has been requested to remit the security deposit amount of Rs 14 m for the due fulfillment of this contract in the shape of a demand draft / irrevocable bank guarantee with validity for a contract period + one year and a claim period for a further three months as a security deposit for the due fulfillment of this contract.

The period of completion of work will be 11 months from the date of handing over of the site.

Failure to commence the work, produce the security deposit, and sign the agreement shall entail cancellation of the work order with forfeiture of EMD paid by the company.

More By This Author:

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity ...

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