Index Hovers around 24250 Amid Selling Pressure in Financial Stocks and Energy Sector
The stock market saw a downtrend today, with the Sensex down over 450 points and the Nifty 50 hovering around 24,200 points. Financial shares were the main culprits behind this decline. However, selective buying in industries like finance and oil & gas helped prevent steeper losses for the indexes. Investors are playing it safe globally as they await a crucial rate decision in the US happening later today.
In Asia, different markets are showing mixed signals. MSCI’s broadest index of Asia Pacific shares outside Japan is up by 0.4%, but Japan’s Nikkei 225 is down by 0.2%. Meanwhile, on Wall Street last night, the Dow Jones, S&P 500, and Nasdaq Composite all closed lower by 0.3-0.6%.
One story making waves today involves Edelweiss Financial Services, which started off strong following some relief from the RBI regarding restrictions on Edelweiss ARC. However, despite the initial spike, the stock is now trading 3.4% lower, at Rs 133.9 per share on the NSE.
On Tuesday, the RBI lifted restrictions on Edelweiss Group entities, ECL Finance, and Edelweiss Asset Reconstruction Company. This came after both companies cooperated to comply with the central bank’s regulatory guidelines, leading to the removal of these restrictions.
In the broader market, there are 147 gainers and 351 decliners in the BSE 500 universe. Bharti Hexacom and Akzo Nobel India are among the top gainers, while NMDC is bearing the brunt of the losses. Asian Paints hit a 52-week low today but has recovered slightly since then. Currently, the stock is trading at Rs 2,368.8 on the BSE, up by 0.5% from its low point earlier.
The advance-decline ratio on the BSE stands at 3:5, with more stocks declining than advancing. Out of 3,869 stocks listed, 1,519 are on the rise while 2,350 are experiencing a decline. In simple terms, for every five falling stocks, three are on the rise.
