Bengaluru, Dec 7 (The Street Press India) – On Thursday, India’s main stock market numbers went down. This happened because financial companies took a break, following seven days of going up and reaching new best-ever levels.The NSE Nifty 50 index dropped by 0.30% to 20,875.50 points, and the S&P BSE Sensex went down by 0.35% to 69,408.07 as of 10:12 a.m. IST. Ajit Mishra, who is a senior vice president of technical research at Religare Broking, mentioned, “We cannot ignore the possibility of some consolidation now, after the recent rally.”
The Nifty 50 showed a strong 5.77% increase in the past seven sessions, reaching record highs. However, it became the most overbought in over two years by the close of the market on Wednesday.
Indexes tied to heavyweight financial stocks, like financials, banks, public sector banks, and private banks, experienced losses ranging from 0.5% to 0.75%.
Analysts anticipate a period of stabilization around the 21,000 levels, especially with the upcoming Reserve Bank of India’s (RBI) monetary policy decision on Friday. It’s expected that the central bank will maintain rates at 6.50% for the fifth consecutive meeting, according to a Reuters poll.
Paytm faced a 16% decline due to the RBI’s decision to limit low-value personal loans, following stricter rules on consumer lending.
On the flip side, oil marketing companies like Bharat Petroleum Corporation, Hindustan Petroleum Corporation, and Indian Oil Corporation saw gains ranging from 0.2% to 1% after oil prices plummeted.
Oil hit a six-month low at $74.11 per barrel on Wednesday, driven by increased U.S. crude output and concerns about global fuel demand stemming from high gasoline inventories.
The drop in crude oil prices brings a positive turn for importers like India and its oil marketing firms. However, Hindustan Unilever, a consumer company, experienced a 2.5% decline due to concerns raised by several brokerages regarding its near-term earnings outlook.
Media companies TV18 Broadcast and Network18 Media & Investments each witnessed a 10% decrease following the announcement of a $1.2 billion merger deal. This came after notable surges of 33.65% and 18.76%, respectively, in the preceding six sessions.
