Sensex, Nifty fall sharply: 6 reasons why stock market turned weak today

The equity benchmark indices BSE Sensex and NSE Nifty remained weak through the session and ended lower on Wednesday (September 2). The Sensex fell 374 points to 76,570, while the Nifty declined 141 points to 23,914, closing below the 24,000 mark and at its lowest level in more than a month.

The Nifty Bank slipped 238 points to 57,172, while the Nifty Midcap index fell 333 points to 63,002. Market breadth also favoured declines, with the advance-decline ratio at 2:3.

Here are the key factors behind today's market fall:

1. Global cues turn unfavourable

Global cues remained unfavourable, keeping pressure on domestic equities.

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2. Auto stocks face selling pressure

Auto stocks came under selling pressure after a mixed August update. The Nifty Auto index fell 2%, while auto ancillary stocks also slipped, tracking the move in original equipment manufacturers. Sona BLW and Uno Minda declined 3% each.

3. Higher crude prices weigh on key sectors

Higher crude prices weighed on airline, paint and oil marketing company (OMC) names. Asian Paints was the top loser.

4. IT stocks drag

Information technology stocks were among the key drags on the market.

5. Cable and wire stocks remain under pressure

Cable and wire stocks faced selling pressure amid competition concerns, with KEI Industries declining 3%.

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6. Power stocks gain, but fail to lift the broader market

Power stocks gained on increased demand. Tata Power and JSW Energy rose 4% each, but gains in select stocks were not enough to offset broader weakness.

Reliance Industries provided support to the market, while Adani Ports and Adani Enterprises recovered from intra-day weakness to close 1% higher each.

Coal India was the top Nifty gainer, rising more than 4% after a healthy update for August. Tata Motors Passenger Vehicles gained 1% after Jaguar Land Rover unveiled its first electric Range Rover. Vodafone Idea rose 3% after the company unveiled its new brand identity.

From the Sensex basket, Coal India Ltd, Adani Ports & Special Economic Zone Ltd, Power Grid Corporation of India Ltd, NTPC Ltd, Reliance Industries Ltd and ITC Ltd were the major gainers. Eicher Motors Ltd, Wipro Ltd, Bajaj Auto Ltd, SBI Life Insurance Company Ltd, Infosys Ltd and Asian Paints Ltd were the biggest laggards.

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