Sensex Today Plunges 700 Points, Nifty Below 19,550 | Sula Vineyard Slumps 8%, Campus Activewear 4% | 4 Reasons Why Indian Share Market is Falling

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After opening the day on a negative note, Indian share markets extended losses as the session progressed and ended the day on a weak note.

Benchmark indices fell on Wednesday, dragged by broad sectoral slide, tracking global peers after weak economic data from the United States, euro zone and China triggered caution and weighed on risk sentiment.

At the closing bell, the BSE Sensex stood lower by 702.9 points (down 1%).

Meanwhile, the NSE Nifty closed down by 219 points (down 1.1%).

Nestle and HUL were among the top gainers today.

Tata Steel and NTPC were among the top losers today.

Check out the NSE Nifty heatmap to get the complete list of gainers and losers.

The Gift Nifty was trading at 19,587, down by 214 points, at the time of writing.

Broader markets ended on a negative note. The BSE Midcap index and the BSE SmallCap index fell 1.3%.

Sectoral indices ended on a negative note with stocks in the metal sector, power sector, and telecom sector witnessed heavy selling.

Shares of Procter & Gamble Health and BEML hit their 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 on a negative note. The Hang Seng fell 2.5% while the Shanghai Composite fell 0.9% and Nikkei ended 2.3% lower.

The rupee is trading at 82.59 against the US$.

Gold prices for the latest contract on MCX are trading up by 0.4% at Rs 59,666 per 10 grams.

Meanwhile, silver prices for the latest contract on MCX are trading higher by 0.5% at Rs 74,353 per kg.

Here are 4 reasons why Indian share markets plunged today.

Why Indian Share Market is Falling

#1 Muted global cues

Overnight, the US markets largely closed on a soft note after Fitch downgraded credit rating to AA+ from AAA. Major averages Dow Jones ended flat, while the S&P 500 and NASDAQ Composite indices slipped up to 0.4%.

During the day, Asia stocks fell after Fitch Ratings downgraded the US sovereign rating. Japan's Nikkei and China's Hang Seng were trading 2% lower as investors await the reaction of the US market later in the day.

#2 FII Selling

After pumping in about Rs 1.5 trillion (tn) on Dalal Street in FY24, foreign institutional investors have shown some signs of exhaustion in the last few days.

Preliminary data shows FIIs sold Indian stocks worth Rs 930 m in the last session.

#3 Weak Rupee

The rupee has been falling for quite some time now and it dragged more today fuelled by the US credit rating downgrade, putting the currency at risk of slipping below a key level.

The rupee was at 82.47 to the US dollar, down from 82.2550 on Tuesday.

#4 Boiling oil prices

A weekly drop in oil inventories coupled with expected production cuts from Saudi Arabia sent crude prices to a three-month high. Both Brent Crude and WTI Crude jumped 1 per cent each to US$ 85 per barrel and US$82 per barrel, respectively.

According to American Petroleum Institute (API) report, US oil inventories dropped 15.4 million barrels ending July 28, surpassing analysts' estimate of 1.37-million-barrel decrease.

Speaking of the stock markets, Rahul Shah co-head of research at Equitymaster, talks about a simple rule to navigate this all-time high market.

The index has already gone up 16% from its March lows and there is nothing on the horizon for the time being that can stop the rally in its tracks.

This presents the classic dilemma for the average investor. Should we take advantage of this rally and exit a few stocks, or should he keep riding the bull to new highs?

Tune in to the below video to know how to navigate.

Suzlon Energy Eyes Rs 18 billion fundraising

In news from the energy sector, Suzlon Energy is planning to hit the public market this month to raise Rs 15- Rs 18 bn by selling shares to institutional investors, as the wind turbine maker looks to substantially reduce debt amid its ongoing efforts to turn around the business.

The turbine maker, founded by the late Tulsi Tanti, has gone through two rounds of debt restructuring in its lifetime, the latest one in 2020 when its lenders agreed to convert Rs 3,000 crore of debt into equity.

The company also received a fresh infusion of capital from its promoters and other investors.

The company is now looking to raise additional funds through the QIP to further reduce its debt and improve its financial flexibility.

The QIP will help Suzlon to reduce its debt burden and improve its financial flexibility.

The QIP is expected to be launched in the next few weeks. Suzlon has already received interest from several institutional investors. Suzlon is a leading wind turbine maker in India.

The company has a strong track record of innovation and has been at the forefront of the development of the wind energy industry in India.

Between July 2022 - July 2023, the stock has rallied 220%.

The stock is a part of Mukul Agarwal's portfolio. For more, check out Ace Investor Mukul Agarwal Picks Fresh Stake in this Multibagger Renewable Energy Stock.

Why SpiceJet share price is rising

Moving on to news from the airline sector, SpiceJet zooms 6% today as the beleaguered airline seeks shareholders' approval to offer a 5.91% stake to Carlyle Aviation Partners, which is the aircraft financing unit of the Carlyle Group.

The lessors have valued the low-cost carrier's share at Rs 48 a piece, which is almost a 55% premium to the current market price.

The airline also has plans to issue equity shares of 20% to promoter Ajay Singh, who will acquire his stake at Rs 10 a share against an infusion of Rs 500 crore.

The fun infusion will make the airline eligible to access credit under the government's Emergency Credit Line Guarantee Scheme (ECLGS), which the cash-strapped airlines badly need.

Singh owns a 59% stake in the company, of which 47% is pledged with banks.

The leasing firm which has the largest exposure among lessors will convert its dues of over US$ 28 m to equity.

SpiceJet has not been able to raise fresh capital and has defaulted on lease rental payments, forcing aircraft lessors to take the airline to insolvency court.

The airline has a 5.4% share of the Indian aviation market, just ahead of new entrant Akasa Air which has a 5% share.

The company's shares are down by more than 25% in 2023. To know why, check out the editorial - why SpiceJet share price is falling.

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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