Stock Market Today:The BSE Sensex and Nifty 50 indexes took a break today on the rise of three consecutive days amid decline in American and European stock futures. At present, around 01:50 in the afternoon, the Nifty is trading at a level of 17,586.30 with a fall of 193.70 points or 1.09 percent. At the same time, the Sensex is trading at 58,883.94, down 674.39 points, or 1.13 percent.
The domestic market has come under pressure in view of heavy selling in US stock futures. In Asian trading, NASDAQ futures are down more than 2 percent and S&P 500 futures are down about 1 percent. The biggest contributor to this decline was Meta (formerly Facebook). Meta shares fell more than 20 per cent in aftermarket trading in the US following weaker-than-expected results for the company. This fall in Meta’s shares showed its effect on the whole world and other social media and technology stocks also came under pressure.
Looking at the domestic market, the Nifty IT index, which has been in sync with American tech stocks in recent months, has also lost 1.1 per cent. Nifty IT index is the biggest contributor to the decline of Nifty 50. After that there is the number of HDFC.
After the strong results of the December quarter, HDFC stock had gained 2 per cent on February 2, but today ie February 3 trading has dominated profit-booking and it has broken about 3 per cent. Weakness in the global market means that foreign investors continue to be net sellers of Indian equities in the cash market. Apart from this, domestic institutional investors who have been seen sluggish today after buying for 2 days, whose effect is being seen on the market. The effect of weekly expiry of index option is also being seen on the market in the form of profit-booking.
Manish Hathiramani of Deendayal Investment says that the market is under pressure from the upper levels and the level of 17800 is seen as a big hurdle for it. It has become very difficult for the market to cross this level. Only after this level is crossed, any new upmove will be seen in the market. Talking about mid and smallcap space, mixed business is seen here. The Nifty Midcap index is seeing a decline of 0.4 percent while the Nifty Smallcap index is seeing a marginal gain of 0.1 percent.
Shares of Godrej Properties have lost over 5 per cent on the news of a quarterly decline of over 40 per cent in sales bookings in the December quarter. At the same time, after the fall of more than 5 percent in the shares of Jubilant Foodworks, now a smart recovery seems to be coming. The company’s same-store sales growth has been weak in the December quarter. Due to which brokerage firms have cut its earnings estimates.
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