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

The benchmark Sensex dropped as much as 5,661 points, or 7.4% to hit an intraday low of 70,785.12 levels, on Tuesday, 4 June.

The sharp drop was primarily driven by uncertainty surrounding the outcome of the Lok Sabha 2024 election results.

At the closing bell, the BSE Sensex stood lower by 739 points (down 0.9%).

Meanwhile, the NSE Nifty closed lower by 275 points (down 1.1%).

Infosys, ITC, and Asian Paints were among the top gainers today.

Tata Steel, BPCL, and ONGC on the other hand, were among the top losers today.

The GIFT Nifty ended at 24,541 down by 313 points.

Broader markets ended the day negative. The BSE Mid Cap ended 2.3% lower and the BSE Small Cap index ended 2.2% lower.

Sectoral indices are trading on a negative note with stocks in the metal sector, auto sector, energy sector, and oil & gas sector witnessing buying most selling pressure.

Shares of Info Edge, Britannia, and TCS hit their respective 52-week highs today.

The rupee is trading at 83.66 against the US$.

Gold prices for the latest contract on MCX are trading 0.9% lower at Rs 73,429 per 10 grams.

Meanwhile, silver prices are trading 1.9% lower at Rs 90,039 per 1 kg.

Here are four reasons why Indian Markets are falling today

#1 Global Market

Broader Asian shares dropped amid uncertainty across the geopolitical landscape and in major economies, and a weaker finish in U.S. equities overnight.

MSCI's broadest index of Asia-Pacific shares outside Japan slid 0.1% and was headed for its worst week in over a month with a 2.4% loss. Japan's Nikkei fell to a more than two-week low and was last down 0.1%, extending its sharp 2.4% fall from the previous session.

Chinese blue-chips fell 0.08% in early trade, while the Shanghai Composite Index edged 0.07% lower. Hong Kong's Hang Seng index slid 1.5%

#2 Fall in Index Heavyweight

Tech Mahindra, Power Grid Corporation of India, UltraTech Cement, Tata Steel, NTPC, and JSW Steel were among the top contributors to the fall in the benchmark index at around 12 noon.

#3 Sectoral Impact

On the sectoral front, Nifty Metal fell 4.1%, and Nifty Oil & Gas declined 2.9%. Nifty Bank, Auto, Financial Services, Media, Pharma, Realty, and Consumer Durables also declined,

#4 Rupee Weakens

The Indian rupee fell 1 paisa to 83.64 against the US dollar in early trade. The dollar index, which tracks the movement of the greenback against a basket of six major world currencies, increased 0.08% to 104.25 level.
 

Why RVNL Share Price is Rising

In news from the railway sector, shares of Rail Vikas Nigam Limited (RVNL) jumped nearly 9% to hit an intraday high of Rs 638 after the company announced a Memorandum of Understanding (MoU) with Israel's United Construction.

The MoU between RVNL and United Construction aims to explore and secure projects across a diverse range of sectors, including railways, mass rapid transit systems (MRTS), tunnels, highways and expressways, bridges, building works, airports, ports, irrigation, power transmission and distribution, and renewable energy sectors such as solar and wind.

In addition to this strategic partnership, RVNL also reported a favourable arbitration outcome. The Hon'ble tribunal awarded Rs 5.8 bn to Krishnapatnam Railway Company Ltd (KRCL) in arbitration case no. 33/2019 against the Ministry of Railways. KRCL is a joint venture and special purpose vehicle of RVNL in which it has a 49.8% stake.

RVNL, a Navratna Central Public Sector Enterprise (CPSE) under the Ministry of Railways, was incorporated in 2003 to address the country's growing infrastructural needs and to expedite project implementation.

Serving as the construction arm of the Ministry of Railways, RVNL handles project execution from concept to commissioning and forms project-specific SPVs to mobilize extra-budgetary resources through a mix of equity and debt.

JSW Infrastructure Slumps 7%. Here's Why

Moving on to news from the engineering sector, shares of JSW Infrastructure fell nearly 7% after the company reported an annual decline in its consolidated net profit for the quarter that ended June, driven by higher expenses.

For the June quarter, JSW Infrastructure's net profit fell 9% year-on-year to Rs 2.9 bn, while total expenses surged 40% year-on-year to Rs 7.1 bn.

Meanwhile, revenue from operations rose 15% year-on-year to Rs 10.1 bn.

The total cargo handled by JSW Infrastructure rose 9% year-on-year to 27.8 million tonnes in Q1 FY25.

Boosted by the increased revenue, the company's EBITDA also rose 24% year-on-year to Rs 609 crore in Q1 FY25. The EBITDA margin expanded to 55.1% in Q1 FY25 from 53.5% in the same period last year.

JSW Infrastructure operates and manages ports and terminals, handling various types of cargo, including dry bulk, break bulk, liquid bulk, gases, and containers.

The company also offers cargo handling, end-to-end logistics, and storage solutions.

More By This Author: