The Sensex and the Nifty 50 extended losses for the second consecutive session on August 28, with frontline indices ending deep in the red. Concerns mounted that the 50 percent US tariffs on Indian goods could shave off up to 1 percent from the country’s economic growth if prolonged.
The Sensex closed 706 points, or 0.87 percent, lower at 80,080.57, while the Nifty 50 fell 211 points, or 0.85 percent, to settle at 24,500.90. The BSE Midcap and Smallcap indices dropped 1.09 percent and 0.96 percent, respectively.
Investors lost nearly ₹4 lakh crore in a single day as the overall market capitalisation of BSE-listed companies fell to ₹445.3 lakh crore from ₹449.4 lakh crore in the previous session.
1. Why did the market fall again?
The main trigger behind the decline was the 50 percent US tariff on Indian goods. Market sentiment has also been weak since late June due to persistent foreign capital outflows, stretched valuations, and subdued corporate earnings.
2. Top losers in the Nifty 50
Out of 50 stocks, 36 closed in the red. Shriram Finance (down 3.94 percent), HCL Technologies (down 2.85 percent), and Power Grid Corporation of India (down 2.04 percent) were the worst performers.
3. Top gainers in the Nifty 50
Titan Company (up 1.06 percent), Coal India (up 0.68 percent), and Hero MotoCorp (up 0.65 percent) were the top gainers.
4. Sectoral performance
Except for Nifty Consumer Durables, which rose 0.56 percent, all sectoral indices ended lower. Nifty Bank, Financial Services, PSU Bank, Private Bank, Realty, IT, and FMCG dropped more than 1 percent each.
5. Most active stocks
Ola Electric Mobility (77.94 crore shares), Vodafone Idea (63.09 crore shares), and RattanIndia Enterprises (8.33 crore shares) were the most traded on the NSE by volume.
6. Stocks that bucked the trend
Despite the selloff, 21 stocks including Shakti Press, Gorani Industries, Titan Biotech, GSS Infotech, and Alphalogic Industries jumped more than 10 percent on the BSE.
7. Advance-decline ratio
Out of 4,258 stocks traded on the BSE, 1,458 advanced, 2,651 declined, and 149 remained unchanged.
8. Nifty's technical outlook
According to Shrikant Chouhan, the head of equity research at Kotak Securities, the Nifty 50 formed a bearish candle on the daily charts, while on intraday charts, it is showing a lower top formation, which is largely negative.
"We believe that the short-term market outlook is weak, but since it is oversold, a quick pullback rally from the current levels cannot be ruled out," said Chouhan.
"For day traders, 24,600 would be a key level. As long as the market remains below this, the weak sentiment is likely to continue. On the lower side, the market could slip to 24,350–24,300," said Chouhan.
"On the flip side, if the market moves above 24,600, the pullback could extend up to the 20-day SMA (simple moving average) or 24,725. Further upside may also continue, potentially lifting the market up to 24,800," Chouhan said.
(By arrangement with livemint.com)
