Indian stock markets witnessed a downturn around lunchtime today, with both the Sensex and Nifty 50 extending their losses from earlier hours. This comes ahead of the monthly expiry of Futures & Options (F&O) contracts, which can cause some jitters in the market.
The Sensex, a benchmark index for the Bombay Stock Exchange (BSE), was down by around 400 points at midday. Similarly, the Nifty 50, a key index for the National Stock Exchange (NSE), also saw losses and was trading lower.
The main sectors pulling the market downwards were Information Technology (IT) and metals. IT stocks, which have been performing well recently, came under pressure today. This could be due to profit-booking by investors after recent gains, or some disappointment with company earnings. Metal stocks also witnessed a significant decline, dropping over 2% at midday.
The upcoming expiry of F&O contracts, which takes place at the end of each month, can lead to increased volatility in the market. Investors may adjust their positions or take profits ahead of the expiry, which can cause fluctuations in stock prices.
The next few days leading up to the expiry are likely to be volatile. Investors should be cautious and closely monitor market movements.
Financial advisors recommend staying composed and avoiding hasty decisions influenced by temporary market swings. They recommend a long-term investment strategy with a diversified portfolio to weather market ups and downs.
Market Mood Can Change Quickly
It’s important to remember that the market mood can change quickly. While the midday trend is negative, the indices could recover later in the day or in the coming days. Investors should stay informed and make informed decisions based on their own risk tolerance and investment goals.
