Synopsis: Indian share market declines over 1% as election uncertainty persists, with Sensex and Nifty 50 hitting three-week lows. Market sentiment dampened by subdued Q4 results from large-cap firms. India VIX at 52-week high of 19 reflects increased market fear. Global markets pause; Nikkei down 0.2%. Hero MotoCorp leads gainers; Larsen & Toubro lags.
The Indian share market witnessed a significant downturn in Thursday's session, with both the Sensex and the Nifty 50 dropping over 1 percent. This decline was fueled by ongoing concerns surrounding the general elections, contributing to increased volatility as the weekly Nifty options expiry loomed.
Closing figures for the day reflected the market's bearish sentiment, with the 30-share BSE Sensex ending lower by 1,062.22 points or 1.45% at 72,404.17 level, while the Nifty 50 closed at 21,957.50 level, down 345 points or 1.55%. Notably, the broader market underperformed the benchmark indices, with the Nifty Small Cap 100 ending 2.83% lower and the Nifty Midcap 100 closing 1.85% lower.
Market analysts anticipate a continued loss of momentum for major Indian indices, as uncertainties surrounding the general elections persist. The subdued signals from large-cap companies' Q4 results have also contributed to dampened investor morale.
Reflecting the heightened uncertainty, the India VIX, a measure of market volatility, reached a 52-week high of 19, indicating increased fear among investors.
On the global front, Reuters reported a pause in the markets following a Bank of England rate decision, after several positive weeks. Japanese officials discussed potential intervention as the yen's decline continued, leading to a downturn in the Nikkei by 0.2%. Additionally, the resource-heavy Australian share market fell by 1.1%, and South Korea also experienced a retreat of 1%.
Within the Nifty 50 index, only 7 stocks settled in the green, while the remaining 43 ended in red. Top gainers included Hero MotoCorp Ltd, Tata Motors Ltd, Mahindra and Mahindra Ltd, State Bank of India, and Bajaj Auto Ltd. Conversely, Larsen & Toubro Ltd, Bharat Petroleum Corporation Ltd, Asian Paints Ltd, Coal India Ltd, and Oil and Natural Gas Corporation Ltd were among the laggards, experiencing notable declines.
Related Answers
1. What were the primary reasons behind the significant downturn witnessed in the Indian share market?
The significant downturn witnessed in the Indian share market was primarily attributed to ongoing concerns surrounding the general elections, contributing to increased volatility as the weekly Nifty options expiry approached.
2. How did the Sensex and Nifty 50 perform during Thursday's trading session?
During Thursday's trading session, the Sensex and Nifty 50 both witnessed a decline, with the Sensex ending lower by 1,062.22 points or 1.45%, and the Nifty 50 closing down 345 points or 1.55%.
3. What were the closing figures for the Sensex and Nifty 50?
The Sensex ended lower by 1,062.22 points or 1.45% at 72,404.17 level, while the Nifty 50 closed at 21,957.50 level, down 345 points or 1.55%.
4. What factors contributed to increased volatility in the Indian share market?
The increased volatility in the Indian share market was driven by ongoing concerns surrounding the general elections and the looming weekly Nifty options expiry.
5. How did global markets respond to the pause in trading following a Bank of England rate decision?
Global markets paused following a Bank of England rate decision, with the Nikkei in Japan down 0.2% and the Australian share market falling by 1.1%.
