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Taking Stock: Sensex, Nifty record biggest weekly fall since June 2022

Geopolitical tensions between Israel and Iran and a rise in foreign outflows have played a major role in the drop in Indian equities this week

October 04, 2024 / 16:03 IST
Market Today

Market Today

In the highly volatile session on October 4, the Indian equity markets ended on a negative note, extending losing streak on the fourth straight session amid escalating geopolitical tensions.

At close, the Sensex was down 808.65 points or 0.98 percent at 81,688.45, and the Nifty was down 200.30 points or 0.79 percent at 25,049.80.

For the week, BSE Sensex and Nifty50 shed 4.5 percent each, which is the biggest weekly fall since June 2022. The escalating Middle East conflict raised worries that crude supplies from the top oil-producing region may be disrupted. That has pushed crude prices higher, which hurts net importers such as India.

After a negative start, market recovered in the initial hours, with Nifty moving towards 25,500 in the first half. However, in the second half, profit booking at higher level dragged the Nifty below 25,000 on an intraday basis.

In today's fall, investors' wealth eroded by around Rs 3.99 lakh crore, as the market capitalisation of BSE-listed companies slipped to Rs 461.26 lakh crore, from Rs 465.25 lakh crore in the previous session.

Also Read - Top 10 biggest single-day market falls of CY24: FPIs still a huge factor even as DIIs try to provide counterbalance

M&M, Bajaj Finance, Nestle India, BPCL, Asian Paints were among the top losers on the NSE, while gainers included Infosys, ONGC, Tata Motors, Wipro, HDFC Life.

Among sectors, except PSU Bank and IT, all other sectoral indices ended in the red with auto, FMCG, realty, power, media, telecom, oil & gas index down 1-2 percent.

IndexPricesChangeChange%
Sensex82,614.12-399.84 -0.48%
Nifty 5025,315.70-107.90 -0.42%
Nifty Bank55,454.05-273.40 -0.49%
Nifty 50 25,315.70 -107.90 (-0.42%)
Fri, Sep 19, 2025
Biggest GainerPricesChangeChange%
Adani Enterpris2,501.9099.90 +4.16%
Biggest LoserPricesChangeChange%
Titan Company3,465.40-45.90 -1.31%
Best SectorPricesChangeChange%
Nifty PSU Bank7387.7583.75 +1.15%
Worst SectorPricesChangeChange%
Nifty IT36519.30-230.95 -0.63%

BSE Midcap and Smallcap indices lost nearly a percent each.

Nearly 200 stocks touched their 52-high on the BSE, including, BASF India, Coforge, Colgate Palmolive, Dr Lal PathLab, Info Edge, JSW Steel, Jubilant Ingrevia, Lloyds Metals, Metropolis Healthcare, Polycab India, Whirlpool of India, among others. Click To View More

On the other hand, CreditAccess Grameen, RBL Bank, Vodafone Idea, Easy Trip Planners, Equitas Bank, Ujjivan Small Finance Bank, among others touched 52-week low.

Outlook for October 7

Ajit Mishra – SVP, Research, Religare Broking

Markets remained under pressure, extending their corrective phase with a loss of over a percent. After an initial decline, Nifty staged a strong recovery in the first half but sharp selling pressure in heavyweights pushed the index briefly below the 25,000 mark. All major sectors, except IT, succumbed to the pressure, with realty, auto, and FMCG among the top losers. Broader indices also weakened, shedding nearly a percent each.

The ongoing geopolitical tensions have driven crude prices higher, dampening hopes for a rate cut by the RBI in the upcoming policy meeting. Additionally, noticeable selling by foreign investors is adding to the market's strain. While there may be a pause or slight rebound after the recent slide, the overall bias will remain negative unless Nifty decisively reclaims the 25,600 level.

Key sectors such as IT, metal, and pharma are showing resilience, while others are facing selling pressure during rallies. Traders should adjust their positions accordingly and consider adopting a hedged approach.

Siddhartha Khemka, Head - Research, Wealth Management, Motilal Oswal Financial Services

Domestic Equities continued their downward journey with Nifty breaching 25k in intra-day. The index finally settled near the day’s low with a loss of 200 points (-0.8%) at 25050 levels. Broader market too saw profit booking and was down 1%. Barring IT & PSU Bank, all sectors ended in red with Realty, FMCG, and Auto down 1-2%. A rise in the volatility index, selling by FIIs, and weak global cues led to profit booking in the market. Nifty shed 1310 points (-5.2%) after making a fresh high of 26277 last week.

We expect markets to consolidate next week amid cautiousness due to fear of increasing tensions in West Asia. With the start of the earning season next week, stock-specific action will continue. Also, the focus will remain on interest-sensitive stock amid the RBI policy meeting next week. Although rate cut is not on the table, commentary will hold great importance.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Rakesh Patil
first published: Oct 4, 2024 03:55 pm

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