Why Did Sensex Fall To 81,445 And Nifty Close At 24,812 For The Second Day In A Row?

Indian stock markets ended lower for the second consecutive session on Wednesday, June 18. Investor worries over rising tensions between Israel and Iran, along with caution ahead of the U.S. Federal Reserve's policy decision, led to weak market sentiment.

The Sensex dropped by 139 points (0.17%) to close at 81,444.66, while the Nifty 50 fell by 41 points (0.17%) to 24,812.05. The BSE Midcap and Smallcap indices also declined by 0.34% each.

Reasons Behind the Market Decline:

Market sentiment was affected by ongoing tensions in the Middle East, particularly between Israel and Iran. Investors were also cautious ahead of the U.S. Federal Reserve's meeting, where concerns about inflation and potential interest rate decisions kept buyers away.

"The domestic market failed to maintain the opening gains as the continuing tensions in the Middle East & volatility in oil prices dragged the overall sentiment. With the supportive base of the domestic macros, the long-term outlook remains intact, and investors are likely to be focused on high-quality large-cap stocks until greater clarity emerges.

Investors will keep an eye on the U.S. Fed policy later today; the prospect of higher inflation due to the tariff threat may lead the FOMC to keep the rates unchanged," said Vinod Nair, Head of Research, Geojit Investments.

Top Gainers and Losers:

Despite the market weakness, a few stocks gained, with IndusInd Bank up 4.69%, Titan rising 2.15%, and Trent adding 1.80%. On the losing side, TCS declined by 1.72%, Adani Ports fell 1.57%, and Hindustan Unilever dropped 1.44%.Overall, 36 out of the 50 stocks in the Nifty index closed in negative territory.

Most sectors closed in the red, with Nifty Media falling the most at 1.27%, followed by IT down 0.83%, and Metal slipping 0.72%.

However, a few sectors managed to post gains. Nifty Consumer Durables rose 0.79%, while Private Bank, Auto, and Nifty Bank gained 0.39%, 0.37%, and 0.21%, respectively.

The Nifty Midcap 150 dropped 0.5%, dragged down by losses in Hindustan Zinc and Max Healthcare. Similarly, the Nifty Smallcap 250 also fell, with The Ramco Cements and Happiest Minds among the top losers.

Technical Market Outlook:

"The index remained volatile throughout the day as updates related to the Israel-Iran conflict and the possibility of U.S. kinetic intervention weighed on global sentiment. On the technical front, Nifty closed below the crucial support level of 24,850.

However, a positive surprise from the Fed could lift both global and domestic markets, helping them shake off prevailing negativity. On the upside, a decisive reclaim of 24,850 may trigger a rally towards 25,000 and higher, while a failure to move back above this level could drag Nifty down towards 24,500," Rupak De, Senior Technical Analyst at LKP Securities.

Other Market Highlights:

• Avenue Supermarts jumped 4% after opening a new store in Uttar Pradesh.
• Trent gained 2% following an analyst meet.
• Hindustan Zinc dropped 6% after its parent company Vedanta sold a 1.6% stake worth over ₹3,000 crore.
• Stocks like TCS, Nestle India, and JSW Steel also closed over 1% lower.

Rupee VS Dollar:

The Indian Rupee also fell during the day. It closed at 86.47 per U.S. dollar, down 0.27% from the previous close of 86.24.

Global Cues:

n the global front, markets were positive on Wednesday ahead of the U.S. Federal Reserve's interest rate decision, with S&P 500 futures up 0.2%, Nasdaq 100 futures gaining 0.3%, and Dow Jones futures edging up 0.1%. While the Fed is expected to keep rates unchanged, its outlook and Fed Chair Jerome Powell's comments on inflation and political pressure could influence the markets.

In Asia, Japan's Nikkei 225 rose 0.9%, and Topix gained 0.77%. South Korea's Kospi climbed 0.74%, and Kosdaq added 0.53%. Australia's ASX 200 slipped 0.12%, while Hong Kong's Hang Seng fell 1.12%. Meanwhile, China's CSI 300 edged up 0.12%.

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