Nifty turns negative for 2024 as regulator warnings jolt mid and smallcaps
Nifty extended its losses on Wednesday falling by over 100 points and hitting the 2024 low of 21,710.20 amid selling pressure in banks, particularly index heavyweight HDFC Bank. The uncertainty over the fate of small and midcap stocks has triggered the slide and in this week, Nifty has conceded 313 points or 1.4% so far.
The headline index had ended 2023 at 21,731.40 on December 29.
Broader markets also felt the heat with Nifty Midcap 100 falling by 530 points on an intraday basis while the Nifty Smallcap 100 correcting by 190 points or 1.3%.
Despite a positive handover by the US markets, both Nifty and S&P BSE Sensex struggled to trade in a tight range. Around 11:15 am, Nifty was trading at 21,796.35, down by 21.10 points or 0.1%. The Nifty breadth remained skewed in favour of the bears with 27 stocks trading in the red, 22 in the green while one remained unchanged.
Most sectors witnessed selling pressure. The worst hit were Nifty Metal and Nifty Pharma which were down by nearly a percentage point. The gainers were IT, auto and oil & gas sectors.
Commenting on the market movement, Anand James, Chief Market Strategist at Geojit Financial Services said that Tuesday’s dips stretched a bit more than his comfort zone. «The day will take support from a firm opening and will attract follow-through buying, if we are able to float above 21,865-21,885 region, but expect distribution followed by a turn lower, as long as 22,032 region holds. Direct rise above the same could call for 22140-220, but with low visibility on
