![Nifty and Sensex Drop for 5th Day Due to Global Weakness; Axis Bank Falls 5% 1 Nifty and Sensex](https://sharepriceindia.com/wp-content/uploads/2024/07/Nifty-and-Sensex.jpg)
The stock markets, Nifty and Sensex, continued their downward trend for the fifth day in a row, affected by weak US markets and budget changes that led to selling pressure.
At 9:30 am, the Sensex was down 0.62% at 79,655, and the Nifty fell 0.60% to 24,267. Around 1,490 shares gained, 1,427 shares lost value, and 93 shares remained unchanged.
Aishvarya Dadheech, founder and CIO of Fident Asset Management, commented that the increase in capital gains tax is not a major issue. Investors have made significant profits, and the small tax increase is not likely to affect their positive outlook much.
Axis Bank shares were notably impacted, dropping 6% after reporting its earnings for April-June, which showed worsening asset quality and negatively affected investor sentiment.
In broader markets, mid and small-cap indices also declined, falling 0.7% and 0.2%, respectively. Dadheech mentioned that large-cap stocks still offer better value compared to mid and small-cap stocks.
The volatility index (VIX) increased by 2.4%, reaching just over 12.
Siddhartha Khemka from Motilal Oswal noted that despite markets hitting new highs, the budget has strengthened India’s economic position. He expects the market to soon focus on corporate earnings growth, which has been slightly below expectations in the first quarter of FY25, leading to market consolidation in the near term.
All 13 sectoral indices were down, with Nifty Bank and Metal falling more than 1% each. Axis Bank, SBI, and ICICI Bank were the major contributors to the decline. Energy, Realty, and IT sectors also dropped by nearly 1% each.
Technical analyst Sameet Chavan from Angel One said the 24,300-24,250 range should act as support, and if it falls below this, the panic low of 24,050 from the budget day could be retested. On the upside, the 24,600 level from the last two sessions is a tough barrier, and the 24,850 level remains a significant challenge.
Top gainers on the Nifty were SBI Life Insurance, Tata Motors, L&T, Nestle India, and Kotak Mahindra Bank. The biggest losers included Axis Bank, Hindalco, Coal India, ICICI Bank, and Tata Steel.
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