Market Mood Sours: Sensex & Nifty Tumble for 7th Straight Day

The bears tightened their grip on Dalal Street as the Indian stock market’s bearish phase deepened on Monday. Benchmark indices wiped out early gains to close in the red for the seventh consecutive session, reflecting sustained investor anxiety.

The S&P BSE Sensex ended the volatile day at 80,364.94, down by a marginal 61.52 points (0.08%). Similarly, the NSE Nifty 50 index settled at 24,634.90, losing 19.80 points (0.08%). Although the market opened on a positive note, it failed to sustain momentum, succumbing to selling pressure amid a mix of global and domestic concerns.

From Green to Red: A Volatile Session

The trading session on September 29 was a classic display of market uncertainty. Indices opened higher, attempting a rebound after a brutal previous week where the Sensex had tanked nearly 2,200 points. However, the optimism was short-lived. By noon, the benchmarks had surrendered all gains and slipped into negative territory, where they remained for the rest of the day.

Intraday volatility was high, with the Sensex swinging over 600 points from its day’s high of 80,851.38 to a low of 80,248.84. This see-saw movement highlighted the ongoing tug-of-war between bargain hunters and sellers spooked by prevailing headwinds.

What’s Driving the Decline?

A combination of factors is currently weighing on investor sentiment. Here’s a breakdown of the key drivers behind the prolonged sell-off:

1. Global Headwinds from the US: The primary trigger for the recent pessimism has been protectionist measures announced by the United States. Reports of a potential hike in H-1B visa fees and new tariffs on pharmaceutical imports have hit investor confidence, particularly affecting the IT and Pharma sectors.

2. RBI Policy Jitters: All eyes are on the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC), which began its three-day meeting today. With persistent inflation and global economic uncertainty, investors are anxious about the central bank’s commentary and its stance on interest rates. The outcome, due on Wednesday, October 1, is a major event risk keeping traders on the sidelines.

3. Relentless FII Selling: Foreign Institutional Investors (FIIs) have been on a selling spree. According to exchange data, FIIs sold equities worth ₹5,687.58 crore on Friday alone, extending their net seller status. This consistent outflow of foreign capital is putting significant pressure on the headline indices.

Market Internals: A Mixed Picture

While the headline indices were negative, the story within the broader market was more nuanced. The Nifty Midcap 100 index ended the day with a gain of 0.27%, suggesting some resilience in mid-sized companies. In contrast, the Nifty Smallcap 100 index slipped by 0.07%.

Sectorally, the market was divided. The Nifty PSU Bank and Nifty Oil and Gas indices were the top performers, both closing over 1% higher. On the other hand, sectors like Nifty Media, Nifty Auto, and Nifty Pharma faced significant selling pressure and ended in the red.

Among individual stocks, Axis Bank, Maruti Suzuki, and Bharti Airtel were some of the top drags on the Sensex, while State Bank of India and HDFC Bank provided some support.

What Investors Should Watch Next

The current market phase calls for caution rather than panic. Here are a few key developments to monitor:

• RBI MPC Outcome (Wednesday, Oct 1): The Governor’s commentary on inflation, growth, and the future policy path will be the most critical domestic trigger this week. A hawkish stance could lead to further downside.
• FII Activity: Keep a close watch on FII data. A slowdown in selling or a return to net buying would be a strong positive signal for the market.
• Global Cues: Developments related to US trade policies and global economic data will continue to influence market direction.
• Nifty’s Technical Levels: The Nifty 50 has crucial support near the 24,500 level. A decisive break below this could open the door for further correction. On the upside, the 25,000 mark will act as a psychological resistance.

In conclusion, while the seven-day losing streak is concerning, the market is reacting to a confluence of well-defined risk factors. Long-term investors may find this correction an opportunity to accumulate quality stocks, but caution is advised until the current uncertainty subsides.

This article is for informational purposes only and does not constitute investment advice. Please conduct your own research before investing.