Stock Market News: Can Nifty bounce back after recent market drop? Know what market experts say”
On Friday, the Indian stock market experienced a significant drop, with the Sensex falling by about 1.5%, ending a three-week rally. This decline was driven by weak global cues, high valuations, and a lack of fresh market catalysts. Analysts suggested that these factors might put a temporary halt to the bullish trend. The Nifty index also reflected this trend, dropping to its lowest levels in weeks.
Market expert Vinod Nair from Geojit Financial Services pointed out that the slowdown in India’s GDP growth during the first quarter of the fiscal year and similar trends in corporate earnings have contributed to the market’s cautious outlook.
The Indian Purchasing Managers’ Index (PMI) also saw a slight dip in August compared to July, indicating subdued business activity. Furthermore, weaker sales figures particularly impacted the auto sector, and high valuations led to poor performance among PSU banks. Falling commodity prices, especially in metals, added further pressure.
Looking ahead, the upcoming U.S. job data, along with the release of four mainboard IPOs and nine SME IPOs next week, including the highly anticipated Bajaj Housing Finance IPO worth ₹6,560 crore, could influence the market’s movements. Additionally, concerns about crude oil prices, as Brent crude saw a 10% decline amid fears of reduced demand from China, will likely impact the market further.
Market participants will also react to other global economic events, particularly interest rate decisions and geopolitical tensions, adding to the volatility in the short term.
