Is there more pain ahead for Nifty 50 after a 2.2% drop in 3 sessions? Here's what analysts say
Coal India, Adani Ports & Special Economic Zone, Adani Enterprises, NTPC, Tata Steel, and ONGC saw losses of over 5%. Moreover, the market was also influenced by the uptick in US inflation to 3.2% in February, raising concerns about the possibility of a rate cut by the US Federal Reserve in the near term. This, however, boosted the dollar index, and even the US stock market surged.
Also Read: Sensex, Nifty 50 fall over 1% each; why did Indian stock market fall today? Nevertheless, the domestic market seems to be viewing this negatively because prolonged high interest rates could deter foreign capital inflows into emerging markets like India, affecting them adversely. On the sectoral front, Nifty Metal was the biggest laggard, down 5.69%, followed by Nifty Media (down 5.62%), Nifty Realty (down 5.32%), Nifty Oil and Gas (down 4.87%), Nifty PSU Bank (down 4.28%), and Nifty Auto (down 2.84%). Only Nifty FMCG ended in the green.
Moreover, today's decline has led to a 2.2% correction in the Nifty 50 over the last three trading sessions. As per analysts, the index is poised for further decline in the near term. Also Read: Five railway multibagger stocks including IRFC, RVNL, RailTel Corp nosedive up to 20% – here's why Rupak De, Senior Technical Analyst, LKP Securities, said, "The Nifty has experienced a breakdown from a rising channel on the daily chart, signaling the conclusion of the previous uptrend and the potential beginning of a downtrend.
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