Stock market today: BSE Sensex plunges over 600 points; Nifty50 dips below 22,000

Stock market today: BSE Sensex plunges over 600 points; Nifty50 dips below 22,000

Stock market today: BSE Sensex and Nifty50, the Indian equity benchmark indices, tanked in trade on Tuesday on weak signals from Asian markets, coupled with a decline in IT stocks. Nifty50 dipped below the 22,000 mark.Meanwhile, the Bank of Japan raised interest rates for the first time in 17 years.

At 10:22 AM, BSE Sensex was trading at 72,113.57, down over 630 points or 0.87%. Nifty50 was at 21,848.75, down over 200 points or 0.94%.

The IT index saw a significant drop of 1.4%, leading to losses in the sector. TCS experienced a decline of 3%, emerging as the top loser in the Nifty50 pack, following a block deal valued at Rs 9,000 crore, where Tata Sons is believed to have divested its stake, stated an ET report.

Investor focus is now directed towards the outcome of the US Fed’s FOMC meeting on March 20th, with futures traders indicating a 54% probability of a rate cut by June.

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, suggested that investors might opt to await clarity on the Fed’s response tomorrow. He highlighted the resilience of large-cap stocks such as RIL, Bharti, Tata Motors, M&M, and Sun Pharma, even in an uncertain market environment.

Analysts predict a period of consolidation for the markets in the coming days, while the broader market may continue to lag behind.

According to the financial daily’s report, the short-term trend for Nifty remains positive with a range-bound movement. Analysts warn of a potential decline if the support levels of 21900-21850 are breached, possibly leading Nifty to 21500 levels swiftly. Nagaraj Shetti from HDFC Securities mentioned that any upward movement from current levels may face strong resistance around 22200 levels.

In the US, major indexes like Dow, S&P, and Nasdaq closed higher on Monday, driven by tech giants like Alphabet and Tesla. Investors are eagerly awaiting the upcoming Federal Reserve meeting.

Asian shares dipped slightly ahead of the Bank of Japan’s anticipated policy decision to end negative interest rates. Futures for S&P 500, Hang Seng, and Nikkei 225 were down, while Japan’s Topix and Australia’s S&P/ASX 200 remained stable. Euro Stoxx 50 futures also experienced a decline.

Foreign portfolio investors were net sellers with Rs 2,051 crore, while domestic institutional investors bought shares worth Rs 2260 crore on Monday.

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