Sensex falls 326 points: 5 reasons why stock market ended lower for 7th straight day

The equity benchmark indices extended their losing streak for a seventh straight session on Wednesday (August 19), with the Sensex falling 326 points to 76,910 and the Nifty declining 77 points to 24,078.

The Nifty managed to hold the 24,000 mark, but market breadth remained weak, with 34 Nifty stocks closing lower and the advance-decline ratio at 1:2. Information technology (IT), capital goods and defence stocks remained under pressure, while financials relatively outperformed.

1. IT stocks erase opening gains

Information technology stocks gave up their opening gains after CLSA downgraded most large-cap names, weighing on the sector during the session.

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2. Capital goods stocks fall sharply

Capital goods stocks were among the major losers. Hitachi and CG Power were among the top losers in the segment.

3. Defence stocks among top midcap losers

Defence stocks also remained under pressure, with Bharat Dynamics Limited (BDL) falling 3% and featuring among the top midcap losers.

4. Page Industries extends losing streak

Page Industries continued its decline, falling 3% on Wednesday. The stock is down 12% this month.

5. Gold price fall weighs on Manappuram, Muthoot

A fall in gold prices weighed on gold-financing stocks. Manappuram Finance and Muthoot Finance declined by up to 2%. Financials relatively outperformed, with the Nifty Bank slipping just 23 points to 57,240, ending close to the flatline.

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Select non-banking financial company (NBFC) stocks saw buying, with PNB Housing Finance among the top gainers. PB Fintech gained more than 2%, while Info Edge closed 2% higher.

Sugar stocks extended their gains, with Bajaj Hindusthan Sugar rising more than 10%. Oriental Hotels also saw a strong move, ending 15% higher. The Nifty Midcap index fell 131 points to 63,409. Overall market breadth favoured declines, with the advance-decline ratio at 1:2.

From the Sensex basket, HCL Technologies Ltd, Eternal Ltd, Kotak Mahindra Bank Ltd, Sun Pharmaceutical Industries Ltd, Wipro Ltd and Infosys Ltd were the major gainers.

Power Grid Corporation of India Ltd, Hindustan Aeronautics Ltd, Coal India Ltd, Jio Financial Services Ltd, ITC Ltd and Larsen & Toubro Ltd were the biggest laggards.

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