Stories
Sensex Drops 250 Points From Day High As Markets Pare Early Gains
- •Benchmark indices Sensex and Nifty pared their early gains due to profit booking at higher levels after rising up to 0.9 percent.
- •Elevated crude oil prices hovering above 105 dollars per barrel amid geopolitical tensions in West Asia and Russia-Ukraine weighed on market sentiment.
- •India's retail inflation accelerated to a higher-than-expected 5.54 percent in September, fueling worries of further rate hikes.
- •Analysts note that Nifty needs to cross the 22,600 mark for sustained strength, while key support remains in the 22,350 to 22,400 zone.
Key Questions Answered
Benchmark indices Sensex and Nifty reduced their early gains on October 13 primarily due to profit booking at higher levels after an initial market rise of up to 0.9%, alongside concerns over elevated crude prices, higher retail inflation, and key technical resistance levels.
India's retail inflation accelerated to a higher-than-expected 5.54% in September, bringing it dangerously close to the central bank's 6% upper tolerance band. This increase has bolstered expectations for potential future rate hikes due to ongoing price pressures from a weak monsoon and the Iran war.
Analysts note that Nifty needs to decisively cross the 22,600 to 22,650 mark to spark further upward momentum towards 22,800 and 23,100. Conversely, a failure to sustain the recovery or a drop below the 22,180 support level could trigger further declines toward 22,000 and 21,743.
