Indian benchmark stock indices continued their decline for the third consecutive session on Thursday. The BSE Sensex opened 0.87% lower at 66,608 and reached an intraday low of 66,137. Over the past three sessions this week, the Sensex has fallen from 67,838 to 66,219, marking a significant drop of over 1,600 points.
During the same period, key indices such as the Nifty 50 and Bank Nifty also experienced selling pressure. The Nifty shed over 450 points in the last three sessions, while the Bank Nifty dropped by approximately 1,200 points.
Experts in the stock market point to several factors contributing to this negative sentiment. These include foreign institutional investors (FIIs) turning into net sellers, a strengthening US dollar, a hawkish stance by the US Federal Reserve, and rising crude oil prices. Many Indian indices had recently reached record highs or were trading near their all-time highs. Consequently, profit booking became more prevalent as upside potential appeared limited.
The surge in international crude oil prices raised concerns about inflation pressures, leading to speculation of a hawkish stance by the US Federal Reserve. This speculation was confirmed in the Fed’s recent meeting, prompting FIIs to withdraw investments from assets like equities and gold. These factors combined have contributed to the current negative market sentiment.
Key levels for Nifty, Sensex, and Bank Nifty remain important for investors. Support levels for the Sensex are seen around 65,700 to 65,500, with the potential for a rebound to 68,000 in case of a trend reversal. The Nifty has major support around 19,600 to 19,500 and faces resistance at 20,300 levels. The Bank Nifty chart indicates support around 44,500 to 44,300, with the possibility of rising to 46,000 to 46,500 in the event of a stock market rebound in the near term. Investors are advised to consider a “buy on dips” strategy.
