Indian stock market might have shocked you today. If you have been watching the stock market, you have noticed a roller coaster move of the market. As Sensex and Nifty both opens up today with a bullish sentiment and then backed by the recent GST reforms, But the upward movement doesn’t lastlong. By Afternoon, Profit booking crept in and the benchmarks gave up much of their early gains. Many people do believe that. stock market only reacts to the company results or quartelrly numbers but In reality, it responds just as strongly to the policy changes, reforms taxation decisions and Global cues. Today was the perfect example, Where the auto stocks were buzzing with excitement, but IT and FMCG counters dragged the indices lower. In this article we will take a closer look upon how the session unfolded. Let’s know about it
Indian Stock Market and the Daily Turns
Morning Cheer with Nifty and Sensex Rally
At the start of the day, In the trade optimisn ran very high. where nifty crossed the 24,800 Marks, while on the other hand sensex crossed the 81,000 points. What’s the reason behind? the GST Council’s announcement of a simplified tax structure. investors usually welcome such reforms because they can boost the consumer spending and corporate profitability in the longer run.
Mid-day Cool Off with Profit-Booking
As the session progressed, Then the excitement starts to fade up. By the noon, Nifty slipped near the 24,724 and Sensex dropped close to 80,600. This wasn’t due to the bad news but because many traders decided to lock in their early profits. In the market, this is very common after big policy announcements. Which is known as the “news effect” on the market.
Auto Sector Steals up the Show
Among all of the sectors, it was clearly visible that the auto sector was standing all above. As the reduction in the GST for the vehicles turned out to be a direct trigger. Lifting the auto index by nearly 1%. As the festive season is just around the corner, The investors have their eyes on this segment, as the demand is going to be very much stronger during the time.
Pressure on IT and FMCG
As the auto sector standing out, The stocks of IT Fell around 1% as concern over U.S. growth weighed on the outlook. The FMCG Pack Also dissapointed, dragged down by ITC’s 2% decline on reports of a possible tobacco levy.
