The shares of several capital market stocks dropped in trade on August 29, as investor sentiment remained muted in the midst of global uncertainties. The sharp drop in the share prices pushed the capital markets index down into the red for the fourth consecutive session.
The Nifty Capital Markets index dropped nearly 2 percent to close at around 4,092.
The shares of Bombay Stock Exchange (BSE) were the top loser on the index, plunging nearly 4 percent to trade at Rs 2,099 apiece. Motilal Oswal Financial Services shares followed, also dropping nearly 4 percent to close at Rs 857.35 apiece.
Nuvama shares fell nearly 3 percent, while Angel One, 360 One WAM and Kfin Technologies shares fell more than 2 percent each.
Central Depository Services (CDSL), NAM-India and HDFC AMC shares closed nearly 2 percent lower. UTI AMC, Indian Energy Exchange (IEX), Aditya Birla Sun Life AMC and MCX shares closed in the red with marginal losses.
The capital market stocks have remained under pressure recently, as US increased tariffs on Indian imports to a whopping 50 percent. The index has now dropped more than 6 percent in four consecutive sessions so far.
The fall in the capital markets stocks comes as benchmark indices closed in the red, erasing all early gains. Sensex fell nearly 271 points (0.34 percent) to 79,809.65, while Nifty 50 fell 74 points (0.30 percent) to 24,426.85.
The combined cash market turnover of the BSE and NSE continued to weaken in August, slipping to a six-month low, as volatility in Indian equities kept investor participation subdued. Exchange data analysed by Moneycontrol showed that the average daily turnover in the cash segment has dropped below Rs 1 lakh crore so far in August, marking the lowest level since February.
This is also the second consecutive month of decline on a month-on-month basis and down nearly 20 percent from June, underscoring the absence of a strong rally that had previously spurred momentum-driven trading. Instead, benchmark indices have largely moved sideways in recent weeks, leading to muted volumes.
Market sentiment has been weighed down by persistent global uncertainty, especially around trade and tariff issues. However, domestic liquidity remains resilient. Systematic Investment Plan (SIP) inflows touched record highs, reflecting continued confidence of retail investors in India’s long-term growth prospects.
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