Stock market today: BSE Sensex plunges 600 points; Nifty50 below 22,100

Stock market today: BSE Sensex and Nifty50, the Indian benchmark stock indices, tanked in trade on Wednesday driven by selling pressure in RIL shares and utilities, as global stocks also saw a downturn, exerting further pressure on the indices.
At 12:15 PM, Sensex was trading at 73,065.03, down 600 points or 0.82%. Nifty50 was at 22,091.70, down 1.09% or 244 points. Despite this overall decline, ITC surged by 6.3% and emerged as the top gainer on both the Sensex and Nifty.
However, broader market indices displayed underperformance as investors sought to capitalize on profits in mid and small-cap stocks following a sustained rally.
According to Prashanth Tapse, Senior VP (Research) at Mehta Equities, technical analysis indicates robust support and resistance levels for the Nifty, presenting an opportune moment for strategic trades.
V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services says in the near term, investors are advised to remain cautious about the continued weakness in the broader market, particularly in the Smallcap segment. Concerns about excessive valuations, fueled by retail investors’ exuberance, have persisted for several months.
The recent correction in the Nifty Smallcap index by 10% from its February 8th peak, triggered partly by regulatory interventions from SEBI, underscores these concerns. With 396 stocks in the lower circuit, further downward pressure may be anticipated in this segment. Mutual funds are also reacting to the overvaluation, with ICICI Pru and other leading funds halting lump sum investments in mid and small-cap schemes, potentially leading to more capital flowing into large-caps and sustaining their outperformance.
In Tokyo, stocks retreated from earlier gains to close lower on Wednesday, despite a rebound in US tech shares driven by hopes for Fed rate cuts. The Nikkei 225 index dropped by 0.26 percent, or 101.54 points, to close at 38,695.97, while the broader Topix index also saw a decline of 0.33 percent, or 8.73 points, closing at 2,648.51.
Meanwhile, Indian government bond yields remained largely unchanged in the early session on Wednesday, unaffected by the rise in US yields following hotter-than-expected inflation data. The benchmark 10-year yield stood at 7.0306% at 10:05 a.m. IST, maintaining its previous close of 7.0274%.

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