Sensex slumps: D-Street in bears' grip amid US attack

On Monday, the Indian stock market plunged into negative territory as investors faced rising US bond yields and concerns over potential interest rate hikes, according to wire material. The benchmark indices Sensex and Nifty experienced significant declines, with the Sensex sliding over 500 points to fall below 76,800 and the Nifty 50 losing more than 150 points to approach the 24,000 level.

Broader market indices also suffered sharp drops, with Nifty Smallcap 100 and Nifty Midcap 100 experiencing declines of up to 0.8%. Major companies such as Infosys, NTPC, Tata Steel, and IndiGo saw their shares tumble by around 2% each, while Power Grid, Asian Paints, HCL Tech, Adani Ports, L&T, UltraTech Cement, and TCS each recorded losses of over 1%.

However, HDFC Bank shares rose by approximately 2%, and Eternal shares increased by over 1%. The sectors of metals, PSU banks, and IT also experienced slight declines, with Nifty Metal dropping around 2%, Nifty PSU Bank falling over 1%, and Nifty IT losing more than 1%. Trading began the week with the market facing headwinds, as the sentiment turned slightly negative following Fed Chair Kevin Warsh's comments on inflation.

The market interpreted this as an indication that the Federal Open Market Committee (FOMC) meeting scheduled for September 15-16 would likely involve a rate hike, which would be unfavorable for equity markets due to the ensuing rise in bond yields. Additionally, renewed tensions between the US and Iran, coupled with crude oil prices surpassing $90 a barrel, further pressured the market.

While the Nifty may face pressure, the broader market is expected to see significant activity, with a trend towards growth preferences over value. Analysts suggested waiting for a break above 24,215 to confirm Nifty's upward momentum, as well as monitoring the possibility of a drop below 24,060, which could expose the level of 23,575.