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The Indian stock market faced significant losses amid the rupee falling to record low levels and weak global cues keeping the market under pressure.
Indian rupee crossed the 91 mark for the first time, and has lost 1% in the last five trading sessions against the US dollar. Sensex suffered a loss of 0.63% or 522 points at 84,679.86, while the Nifty 50 was down by 0.64% or 167 points at 25,860.10. Among the sectors, Nifty Realty emerged as the top laggard. Others, including Nifty Bank, Nifty Oil & Gas, and Nifty Pharma, all closed lower, while on the upside was the Nifty Consumer Durables index. Shrikant Chouhan, Head Equity Research, Kotak Securities, said, "The benchmark indices corrected sharply. The Nifty ended 167 points lower, while the Sensex was down by 522 points. Among sectors, almost all the major sectoral indices witnessed intraday profit booking at higher levels, but the Reality Index lost the most, shedding 1.50%." "Technically, after a gap-down open, the entire day saw market selling pressure at higher levels. On daily charts, it has formed a bearish candle, indicating further weakness from the current levels," Chouhan added. Vinod Nair, Head of Research, Geojit Investments Limited, said, "Continued INR weakness to fresh record lows, driven by persistent FII outflows and subdued global sentiments, dragged domestic markets into negative territory. Small and mid-caps lagged large caps, with IT, metals, banking, and realty leading losses, while consumption stocks offered limited support." "Volatility is expected to remain elevated amid currency fluctuations and uncertainty over foreign inflows. Progress on the US-India trade deal and rupee stabilisation will be critical, while softer commodity prices and improving earnings visibility provide a constructive medium-term backdrop," he added. Vatsal Bhuva, Technical Analyst at LKP Securities, said, "On Tuesday's session, Bank Nifty ended on a cautious note, forming a bearish candlestick and closing below its 10-day and 20-day SMAs, reflecting short-term pressure. The RSI is making lower tops, which highlights weakening momentum and a lack of buying strength. Overall, the chart structure appears slightly weak." "The index has crucial support at 58,800; a decisive close below this could open downside towards its 50-day SMA (Simple Moving Average) placed in the 58,300-58,200 zone. On the upside, immediate resistance lies at 59,300 and 59,500 levels. A sustainable bullish view is advisable only if the index manages a closing above 59,500." (ANI)
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