Sensex Today Tanks 724 Points | Paytm Plunges 10% | 3 Reasons Why Indian Share Market is Falling

Thu, 8 Feb Closing

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After opening the day higher, Indian share markets gave up the gains as the session progressed and ended the day on weak note.

Benchmark indices took a sharp knock on the bourses on Thursday after the Reserve Bank of India's decision to keep repo rate steady with no guidance on rate cut, put pressure on private bank stocks.

At the closing bell, the BSE Sensex stood down by 724 points (down 1%).

Meanwhile, the NSE Nifty closed down by 213 points (down 1%).

SBI, BPCL and Hindalco were among the top gainers today.

ITC, Nestle and ICICI Bank on the other hand, were among the top losers today.

The GIFT Nifty was trading at 21,827 down by 195 points, at the time of writing.

Broader markets ended on mixed. The BSE MidCap index ended flat and BSE SmallCap index ended 0.4% lower.

Sectoral indices ended mixed with stocks in energy sector, telecom sector and oil & gas sector witness most buying. Meanwhile, stocks in realty sector, banking sector and auto sector witnessed selling pressure.

Shares of TCS, Siemens and KSB hit their respective 52-week highs today.

Now track the biggest movers of the stock market using stocks to watch today section. This should help you keep updated with the latest developments...

Asian share markets ended mixed. The Shanghai Composite ended 1.3% lower, while the Nikkei index ended 2% higher. Meanwhile Hang Seng ended 1.3% lower.

The rupee is trading at 82.97 against the US$.

Gold prices for the latest contract on MCX are trading flat at Rs 62,496 per 10 grams.

Meanwhile, silver prices are trading marginally higher at Rs 70,345 per 1 kg.

Here are three reasons why Indian Markets are falling today.

#1 Disappointing RBI Policy

The Reserve Bank of India (RBI) Governor announced that the central bank's Monetary Policy Committee (MPC) decided to keep the key interest rates unchanged at 6.5%.

The decision's impact was seen on bank and financial services stocks, which fell after starting off the session on a positive note. Nifty Bank was down 0.9%, while Nifty Financial Services fell over 1%.

#2 Oil on Boil

Oil extended gains on Thursday after Israel rejected a ceasefire offer from Hamas, while weaker dollar supported prices.

Brent crude futures nears US$ 80 a barrel. US WTI crude futures climbed past US$ 74.12 a barrel.

Israeli Prime Minister Benjamin Netanyahu rejected Hamas' latest offer for a ceasefire and return of hostages held in the Gaza Strip.

#3 Selloff in Index Heavyweight stocks

Shares of ITC fell 4% and was the biggest contributor in today's fall. Apart from that, Index heavyweights such as Axis Bank, Nestle and ICICI Bank were the other notable losers.

Speaking of stock markets, smallcaps were not the only outperformers of 2023.

Stocks from the defence, railways and electric vehicle sectors also found their place under the sun.

Stocks of the largest public sector entities in defence and railway sectors fetched handsome gains every time the government ordered more spending.

But there were also plenty of private sector entities in defence ecosystem that commanded premium valuations.

The EV sector became a stock market favourite in 2023.

Am sure you wonder, what after these big-ticket gains?

Will the stars of 2023 continue to shine in 2024? Or should you consider a different set of potential wealth creators?

Research Analyst, Tanushree Banerjee answers this in below video.

Why ITC Share Price is Falling

In news from the FMCG sector, ITC fell 4% after its largest shareholder, British American Tobacco (BAT), said it was working towards completing the regulatory process to pare its stake in the diversified conglomerate.

BAT holds a 29% stake in ITC, which is worth Rs 1.5 tn.

The company said it has been working for some time on completing the regulatory process to give it the flexibility to monetise some of its shareholding. It will update shareholders with further information whenever available.

After falling 20% over 2023, BAT shares were trading higher by 5.5% on the LSE.

If BAT were to pare its stake by four percentage points to have a 25% shareholding in ITC, the value of the shares offloaded would be around Rs 207.6 bn at ITC's current market cap.

The complexity of divesting ITC's shares is immense and there are two key pain points. India imposes restrictions and limitations on foreign ownership in domestic tobacco companies.

For more, check out Top Performing Consumption Stocks of 2023 so far. Take a Look...

ITC is one of the best dividend-paying stocks. For more, check out the best dividend stocks you can count on.

Apart from that, we also covered an editorial a couple of months ago explaining why the prospects for ITC look good. You can read it here - ITC: Load, Aim...Fire.

Cummins India Zooms 10%. Here's Why.

Moving on to news from the engineering sector, shares of Cummins India rallied over 10% on 8 February 2024 to hit a new all-time high of Rs 2,648.0 on the National Stock Exchange (NSE), a day after the company reported impressive earnings for the quarter ended December 2023.

The company's Q3 results showed a marked improvement in the company's performance compared to the same period last year.

The company reported its highest-ever quarterly consolidated net profit at Rs 4.6 bn in the October-December quarter, up 26% from Rs 3.6 bn reported in the year-ago quarter.

It also recorded its highest-ever revenue of Rs 25.3 bn, a YoY growth of 16.2% compared to Rs 21.8 bn in Q3 FY23.

The company recorded the highest quarterly revenue and profits based on robust domestic demand and is well-positioned to support domestic and export demand.

The company has a strong liquidity and financial position to support its operations and growth plans.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

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INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

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Indian Share Market Update: Top Gainers and Losers