The BSE benchmark index Sensex on Wednesday crashed 938 points to end the day at 47,409—a decline of 1.94%, whereas the Nifty slipped 271.40 points to touch 13,967. The Indian stock markets are falling due to massive selling across sectors and in the past four trading sessions, Sensex has declined 4.78% or 2,382 points.
The development comes after the Sensex crossed the 50,000-mark, with analysts warning investors to be cautious as a market correction was inevitable. Interestingly, the IMF’s prediction that the Indian economy will grow at 11.5% in 2021 has also failed to lift the mood of the market.
Majority of stocks end in red
Majority of the stocks ended in red except for a few such as Tech Mahindra that witnessed a surge of 2.58%, SBI Life Insurance that surged by 2.19%, Wipro that surged by 2.10% and ITC that recorded a growth of 1.37%. Of the Sensex constituents, 24 shares ended I red, whereas six were in the green zone.
Axis Bank, Titan, IndusInd Bank, HDFC Bank, Dr Reddy’s, HDFC and Asian Paint were major losers on the Sensex chart. Mukesh Ambani’s Reliance Industries also continued its decline and slipped by 2.37% to end the day at Rs 1,895.
According to market experts, the decline is attributed to weakness in global markets as well as selling from FIIs in the cash segment. Also, people are booking profit ahead of an Union budget and the uncertainties associated with it.
High hopes from Union budget
The Union Budget is going to be tabled in the parliament on February 1 and investors are treading cautious because of the same. If the budget does not meet the market expectations, then the benchmark indexes are likely to go down.
The Union Budget is also crucial as it comes in the middle of the COVID-19 pandemic that has devastated global economy. Although India has made a faster recovery in the last quarter ending December 31, investors will have high hopes from Union finance minister Nirmala Sitharaman. The market is expecting the government to take adequate measures to enhance spending and consumption.
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