Daijiworld Media Network- Mumbai
Mumbai, Jan 9: Indian stock markets extended their losing streak on Thursday, January 9, as benchmark indices Sensex and Nifty 50 fell for the second consecutive session. Weighed down by weak global cues, a rising US dollar, and higher bond yields, both indices declined by 0.80% during intraday trade.
The Sensex opened at 78,206.21, compared to its previous close of 78,148.49, and plunged over 600 points to hit an intraday low of 77,542.92. It eventually closed 528 points lower, or 0.68%, at 77,620.21. Similarly, the Nifty 50 opened at 23,674.75 and slid over 180 points to touch 23,503.05 before settling 162 points lower, or 0.69%, at 23,526.50.
The broader market also faced a selloff, with the BSE Midcap and Smallcap indices dropping up to 1%. Over the last two sessions, the benchmark indices have lost nearly 1%, eroding the total market capitalisation of BSE-listed companies by Rs 6 lac crore, from Rs 442 lac crore on January 7 to Rs 436 lac crore.
Sectoral performance
While Nifty FMCG managed to buck the trend with a gain of nearly 1%, most other sectoral indices ended in the red:
• Nifty Realty: Down nearly 3%
• Oil and Gas Index: Dropped close to 2%
• IT, Metal, and PSU Bank Indices: Declined over 1%
• Nifty Bank and Financial Services: Fell nearly 1%.
Key factors behind the decline
1. Weak Global Cues: Uncertainty in global markets weighed on investor sentiment
2. Rising US Dollar: A stronger dollar pressured emerging market currencies, including the Indian Rupee
3. Higher Bond Yields: Rising yields made equities less attractive
4. Sectoral Pressure: Losses in key sectors like realty, oil and gas, and metals added to the drag
5. Profit Booking: Investors opted to lock in gains after recent market highs
The broader market trend indicates cautious sentiment among investors, with mid and small-cap segments bearing the brunt of the selloff.