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HomeNewsSensex drops 300 points due to heavy selling in major stocks

Sensex drops 300 points due to heavy selling in major stocks

On Friday, the BSE Sensex took a hit, plummeting by 300 points amidst a sell-off in heavyweight stocks, according to reports from New Delhi.

Trading at 74,310 points, the BSE Sensex saw a notable decline, reflecting the bearish sentiment in the market. Notable stocks such as Bharti Airtel, L&T, Tech Mahindra, Nestle India, Maruti, and Infosys were among those trading in the red, contributing to the overall downturn.

However, amidst the sea of red, Bajaj Finance stood out with a remarkable gain of over 4 percent. This surge followed the lifting of restrictions on some of its products by the Reserve Bank of India (RBI).

Sectoral indices such as technology, private banks, capital goods, and real estate were also affected, registering losses. Notably, IT stock Coforge saw a significant drop of more than 8 percent in its share price.

In a noteworthy development, Coforge announced its acquisition of Cigniti Tech, a testing company specializing in assurance services. This move was met with optimism by JM Financial Institutional Securities, which highlighted the potential synergies between the two companies and the anticipated positive impact on Coforge’s earnings per share (EPS).

  1. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, weighed in on the market dynamics, noting positive cues from both global and domestic factors. Factors such as the decline in the dollar index, correction in the US 10-year bond yield, and a drop in Brent crude prices are seen as favorable for the market outlook.

Moreover, Vijayakumar emphasized the strong support provided by domestic institutional investors (DIIs), driven by sustained fund inflows. The recent move by the RBI to lift restrictions on Bajaj Finance’s products was highlighted as particularly bullish for the stock, with potential for further gains fueled by short covering.

Overall, despite the current downturn, market analysts remain optimistic about the market’s resilience and potential for growth, driven by favorable macroeconomic conditions and investor sentiment.