Indian Stock Market Tumbles: Sensex Plunges 939 Points Amid Weak Sentiment

Indian stock market plummets on May 3, 2024, with Sensex down 939 points and Nifty 50 down 164 points. Market volatility surges 11% as 27 out of 30 Sensex stocks and most sectoral indices trade in the red.

Dil Bar Irshad
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Indian Stock Market Tumbles: Sensex Plunges 939 Points Amid Weak Sentiment

Indian Stock Market Tumbles: Sensex Plunges 939 Points Amid Weak Sentiment

On May 3, 2024, the Indian stock market experienced a significant downturn, with the BSE Sensex plummeting 939 points or 1.26% to close at 73,671. The NSE Nifty 50 also fell 164 points or 0.72% to end the day at 22,484.65. This sharp decline was attributed to weak market sentiment, as 27 out of 30 Sensex stocks and most sectoral indices traded in the red.

Why this matters: The sudden drop in the Indian stock market can have a ripple effect on the country's economy, impacting investor confidence and potentially influencing consumer spending and business investment decisions. Moreover, this decline may also have implications for global markets, as investors closely watch the performance of emerging economies like India.

The market volatility index, India VIX, surged 11%, indicating heightened instability and uncertainty among investors. The top gainers on the NSE Nifty 50 index included Bajaj Finance, Bajaj Finserv, Coal India, ONGC, and Tata Consumer Products. In contrast, the top laggards were Bharti Airtel, L&T, Nestle India, Maruti Suzuki India, and HDFC Life Insurance.

Rupak De, Senior Technical Analyst at LKP Securities, commented on the technical outlook of the Nifty index, stating, "The trend may continue sideways with potential to fluctuate within the range of 22,500-22,800." This suggests that the market may remain range-bound in the near term, with investors closely monitoring key support and resistance levels.

Several individual stocks also witnessed significant movements. Dabur's stock price surged 2% following the company's announcement of strong earnings for the fourth quarter of FY24. Coforge's shares hit a 10% lower circuit after the company announced its intention to purchase a stake in Cigniti Technologies. Bajaj Finance's share price surged over 7% after the Reserve Bank of India lifted restrictions on the company's two products.

The NSE added Aditya Birla Fashion, Biocon, and Vodafone Idea to the futures and options (F&O) segment on May 3, 2024. This move is expected to increase liquidity and trading interest in these stocks. Foreign institutional investors (FII) offloaded shares worth net Rs 964.47 crore, while domestic institutional investors (DII) mopped up shares worth net Rs 1,353.44 crore on May 2, 2024.

Global trends also played a role in shaping the Indian market sentiment. WTI crude prices rose 0.09% to $79.13, while Brent crude prices increased 0.06% to $83.81. The US Dollar Index (DXY) saw a marginal increase of 0.05% to 105.36. The tech-centric Nasdaq Composite closed up by 130.65 points or 0.84% to 15,736.13, while the S&P 500 advanced by 45.51 points or 0.91% to 5,064.20.

The sharp decline in the Indianstock marketon May 3, 2024, reflects the prevailing weak sentiment among investors. The plunge in the Sensex and Nifty 50 indices, along with the surge in market volatility, highlights the uncertainty and concerns surrounding the current market conditions. As investors traverse this complex environment, they will closely monitor global cues, corporate earnings, and domestic economic indicators to form well-reasoned judgments.

Key Takeaways

  • Indian stock market plummets: Sensex down 939 points, Nifty 50 down 164 points.
  • Market volatility index, India VIX, surges 11% amid investor uncertainty.
  • Top gainers: Bajaj Finance, Bajaj Finserv, Coal India; top laggards: Bharti Airtel, L&T.
  • Market expected to remain range-bound in near term, with key support and resistance levels.
  • Global trends influence Indian market sentiment, with WTI crude and US Dollar Index rising.