“Market Close: Sensex and Nifty 50 Fall; ICICI Bank, Infosys, and L&T Contribute to Losses”

On September 4, the Indian stock market faced a downturn, with both the Sensex and Nifty 50 ending the day in negative territory. This decline was primarily driven by profit-taking in major stocks such as ICICI Bank, Infosys, and Larsen & Toubro (L&T), amid negative global economic cues.

The Sensex opened sharply lower at 81,845.50, marking a decrease of 710 points from its previous close. Throughout the session, it struggled to recover, hitting an intraday low of 81,833.69 before closing at 82,352.64. This represented a drop of 203 points, or 0.25%, with 19 of the 30 stocks on the index ending in the red.

The Nifty 50 experienced a similar fate, starting the day at 25,089.95, compared to its previous closing figure of 25,279.85. It reached an intraday low of 25,083.80 and ended the session at 25,198.70, down by 81 points or 0.32%. Out of the 50 constituent stocks, 31 finished lower.

In contrast to the major indices, the BSE Midcap index saw a marginal decline of 0.12%, whereas the Smallcap index managed to rise by 0.32%, defying the overall market trend.

The market’s decline was influenced by several factors, including weak global economic signals and profit-taking in key stocks. Recent reports indicated continued weakness in US manufacturing for August, heightening fears of a potential economic slowdown in the United States. This sentiment was echoed in global markets, with the Nasdaq dropping over 3% overnight. Asian indices, such as Japan’s Nikkei and Korea’s Kospi, fell by up to 4%, and European markets also showed declines, with the UK’s FTSE, France’s CAC, and Germany’s DAX all experiencing losses of nearly 1%.

The Indian market, lacking significant domestic catalysts, mirrored these global trends. Vinod Nair, Head of Research at Geojit Financial Services, explained, “The disappointing US manufacturing data has raised concerns about a potential slowdown in the US economy, which has impacted the domestic market. Additionally, the ongoing sluggishness in the Chinese economy has contributed to a drop in oil prices to a nine-month low. With few domestic drivers, the market is heavily influenced by global developments.”

Among the Nifty 50 stocks, Wipro, Coal India, and ONGC were the major decliners, while Asian Paints, Grasim, and Hindustan Unilever were notable gainers, providing some positive support amid the broader market decline.

In conclusion, the Indian stock market’s performance on September 4 underscores its sensitivity to international economic conditions. With the absence of significant domestic triggers, market movements continue to be largely dictated by global economic signals and investor sentiment.