The prospect of lower than expected flows HDFC Bank At the end of this month, after the MSCI Index The decision to increase the weight of stocks in its index in two tranches (at the end of August and in November) also dampened sentiment.
The NSE Skilled On Tuesday, the BSE Sensex fell 208 points or 0.85 per cent to close at 24,139. The BSE Sensex declined 692.89 points or 0.87 per cent to close at 78,956.03.
While the market Although it began tentatively, the sell-off deepened amid reports that the White House warned that Iran or its proxies could launch an attack on Israel in the coming days.
“Many factors like global uncertainties, geopolitical tensions and the latest Hindenburg report have led to some caution among market participants,” said Rajesh Palviya, Head – Technical and Derivatives Research, Axis Securities.
HDFC Bank fell 3.3%.
Reluctant to hold positions overnight
“The disappointment in the market today was partly due to MSCI saying it would increase the weighting of HDFC Bank in batches rather than all at once, which had driven markets higher earlier,” said Andrew Holland, CEO of Avendus Capital Public Markets Alternate Strategies. “Traders also lightened some positions ahead of the announcement of the move.” US CPI inflation data on Wednesday and the market holiday after that. “U.S. CPI inflation data for July could show a decline, paving the way for a interest rate cut by the Federal Reserve in September. But with financial markets closed on Thursday for Independence Day, traders are reluctant to hold positions overnight.
Volatile markets
The NSE volatility index rose 1.9% to 16.17, suggesting traders see risks in the market in the near term. The index has risen nearly 14% in the past month.
“The Nifty is likely to revisit the 24,000 mark and the Bank Nifty 49,500 mark, and the near-term trend remains weak for both. A drop below these levels can push the indices lower further,” said Palviya of Axis Securities.
The Nifty options pile-up suggests that the index is facing resistance at higher levels. “We saw selling of call options at strikes of 24,400-24,500 at the start of the series, and there has been no short-covering in these positions yet, which is putting more pressure on the market,” Palviya said.
Foreign portfolio investors sold shares worth a net Rs 2,107 crore. Domestic institutions bought shares worth Rs 1,240 crore.
The Nifty Midcap 150 index fell 0.77% and the Nifty Small-cap 250 index fell 1.23%. Of the 4,026 stocks listed on the Boston Stock Exchange, 1,202 advanced and 2,743 fell.
Elsewhere in Asia, China advanced 0.3%, Hong Kong rose 0.4%, South Korea gained 0.1% and Taiwan rose 0.1%.
The pan-European Stoxx 600 index was down 0.1% at the time of going to press.
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