Sensex sinks 677pts, Nifty nears 19,500 amid global rout; all sectors bleed

CLOSING BELL on August 2, 2023: Equity markets roiled under global pressure on Wednesday after rating agency Fitch downgraded credit rating of the US

Stock market highlights: Equity markets roiled under global pressure on Wednesday after rating agency Fitch downgraded credit rating of the US to AA+ from AAA. The S&P BSE Sensex crashed over 1,000 points intra-day before closing at 65,783, down 677 points or 1 per cent. The Nifty50, on the other hand, hit a low of 19,423 before shutting at 19,527, down 207 points or 1.05 per cent. 

Fitch said that the downgrade reflected "expected fiscal deterioration over the next three years and growing government debt burden." READ REASONS FOR MARKET CRASH

The sell-off was sharper in the broader markets where the BSE MidCap and SmallCap indices fell about 1.4 per cent each. Among sectos, the Nifty PSU Bank index was the worst hit amng a broad-based selling as it fell 2.6 pe cent, followed by the Nifty Metal index (down 2 per cent). 

ALSO READ: What does Fitch downgrade of US credit rating to AA+ mean for the markets?

Gainers and losers

Hero MotoCorp, Tata Motors, Eicher Motors, NTPC, Coal India, Hindalco, BPCL, Bajaj Finserv, JSW Steel, SBI, Axis Bank, Bajaj Auto, Power Grid, Bharti Airtel, Tata Consumer Products, ITC, and Kotak Bank were the top laggards on the Nifty50 index, down in the range of 1 per cent to 3.5 per cent.

On the flipside, only five stocks -- Divis Labs, Nestle India, HUL, Asian Paints, Tech M -- eked out gains up to 1.5 per cent. 

4:08 PM

COMMENT:: Negative global news flow, FII selling dent sentiment

"The Indian market witnessed a broad sectoral slide, affected by weak global market trends. Negative news regarding the US rating downgrade on fiscal concerns, coupled with weak factory activity data from Eurozone and China, led to widespread worries across the globe. Additionally, prolonged FII selling, triggered by a rise in US bond yields, has disrupted the mood of the domestic market."

 

- Vinod Nair, Head of Research at Geojit Financial Services
 

4:06 PM

VIEW:: Nifty may weaken on fall below 19,500

"Nifty's recent slip below its consolidation indicates a bearish sentiment. The index has also dropped below the 21-EMA, reinforcing the bearish outlook. The RSI is signaling a bearish momentum for the future. On the downside, support is observed at 19,500, a decisive fall below 19,500 may create further negativity; while resistance is seen at 19,600."

 

- Rupak De, Senior Technical Analyst at LKP Securities

4:05 PM

VIEW:: Immediate resistance for Bank Nifty seen at 45,200

"The Bank Nifty index faced a bearish scenario as the bears took control, resulting in a breakdown from a rising trendline accompanied by increased trading volumes. Currently, the immediate resistance level for the index is at 45,200. If the index manages to break above this resistance, it could potentially trigger some buying activity in the market. On the downside, the index has the next support at 44,600 / 44,500 levels. If the index holds above this support zone, there is a possibility of witnessing some buying interest, leading the index towards the 45,000 level."

 

- Kunal Shah, Senior Technical Analyst at LKP Securities

4:03 PM

What does Fitch downgrade of US credit rating to AA+ mean for the markets?

The development caused a flutter across equity markets, with most leading frontline global equity indices trading weak on Wednesday. READ MORE

4:02 PM

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4:01 PM

Sun Pharma Q1 profit may be weighed by weak US specialty sales and Taro nos

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4:00 PM

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3:58 PM

GE Power gets LoI for contact worth of Rs 444 crore; stock surges 11%

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3:56 PM

Escorts Kubota hits new high on strong Q1 results

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3:54 PM

Redington sinks 10% on weak June quarter results

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3:53 PM

Sanghi Industries freezes at 5% upper circuit as Ambuja eyes buying majority stake

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3:52 PM

Sula Vineyards plunges 8% on Rs 116-crore excise duty notice from Maha govt

The company said the order does not affect the existing business or the activities of the company. READ MORE

3:49 PM

Sectorwise Performance: Major indices end over 1% lower; Metal index sheds 2%

3:47 PM

Market breadth extremely negative; Over 2,300 shares declined vs 1,260 advancing stocks on the BSE

3:46 PM

BSE Smallcap Heatmap:: MPS zooms 20%, Man Inds 14%; Suryoday SFB slumps 11%