1. Benchmark stock indices faced a notable decline on Thursday due to increased volatility.
2. The S&P BSE Sensex dropped by 1,062.22 points, closing at 72,404.17.
3. Subdued investor confidence prevailed amidst the significant downturn in the market.
Mumbai, May 09: On Thursday, benchmark stock indices experienced a significant downturn amid rising volatility, leading to subdued investor confidence.
The S&P BSE Sensex recorded a substantial drop of 1,062.22 points, marking a decline of 1.45%, closing at 72,404.17. Meanwhile, the NSE Nifty50 also registered a notable decrease, falling by 1.55% to settle at 21,957.50 points.
According to Sonam Srivastava, founder and fund manager at Wright Research, investors are exhibiting caution ahead of the election results, opting to secure profits rather than enter the market.
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This sentiment has contributed to increased market volatility, with the volatility index soaring for an eleventh consecutive session to 18.20, reaching its highest level since October 2022.
In terms of sectoral performance, twelve out of thirteen major sectors witnessed declines. Notably, construction firm L&T faced significant losses, emerging as the top loser on the Nifty50 with a 6% drop attributed to a subdued revenue growth outlook.
However, there were some positive movements amidst the downturn. State Bank of India managed to close 1% higher, buoyed by a record profit attributed to robust loan growth.
Similarly, Hero MotoCorp exhibited positive momentum following better-than-expected profit outcomes on the previous day, contributing to a 0.8% rise in the Nifty Auto index.
Despite these instances of positivity, some major players faced challenges. Asian Paints experienced a decline of approximately 5% after reporting a fourth-quarter profit miss, impacting overall market sentiment.
In terms of market capitalization segments, both small-cap and mid-cap indices underperformed, witnessing declines of 2.8% and 1.9%, respectively.
These declines across various sectors and market segments reflect the prevailing uncertainty and cautious sentiment among investors amid heightened volatility in the stock market.
