The Indian stock market is expected to start on a weaker note on Tuesday (August 18), taking cues from Asian markets, while the GIFT Nifty traded flat at 24,297, down 21.5 points as of 8:20 am IST. According to reports from ET Now, the GIFT Nifty serves as a pre-market indicator for the Nifty 50 and often signals whether the benchmark index is likely to open higher, lower or flat based on global market cues. This flat opening follows the previous session where the 30-share BSE Sensex declined 281.09 points to settle at 77,728.16, while the 50-share NSE Nifty declined 78.35 points to end at 24,287.65, extending its losing streak to the fifth consecutive session. Market analysts note that while a 1% fall in the Nifty doesn't automatically mean a market crash, the size, breadth and underlying reasons for the decline matter significantly.
SEBI-registered research analyst Kunal Bothra has recommended Kfin Technologies and Tata Steel as potential gainers for Tuesday's trading session. As reported by ET Now, Bothra has set specific target prices and stop-loss levels for both stocks. Kfin Technologies is recommended with a target price of ₹1,010 and stop-loss at ₹950, while Tata Steel carries a target price of ₹194 with a stop-loss at ₹181. These recommendations come as investors seek opportunities amid the current market weakness and negative Asian cues. Market experts emphasize that while crashes can result from multiple factors including economic uncertainty, geopolitical tensions, inflation, interest rates, and high valuations, investors should focus on preparing for market volatility through portfolio diversification and verified information sources.
Asian markets showed broad weakness on Tuesday, with Japan's Nikkei 225 trading over 1.5% lower at 68,049, while South Korea's KOSPI slipped 0.7% to 6,923.87. According to ET Now, Hong Kong's Hang Seng also mirrored the trend, trading around 0.8% lower at 25,278, and China's Shanghai Composite slipped 0.4% to 3,967.23. This negative sentiment from Asian markets is contributing to the cautious opening expected in Indian equities. Market analysts highlight that wars, conflicts and international disputes can quickly affect financial markets by disrupting trade, increasing commodity prices and making investors move money towards safer assets, particularly impacting India's crude oil-dependent economy.
The previous trading session saw significant volatility with the BSE Sensex dropping 555.5 points to an intraday low of 77,453.75, representing a 0.71% decline during the day. As reported by ET Now, the NSE Nifty also declined 78.35 points to end at 24,287.65, extending its losing streak to the fifth consecutive session. The extended decline in both indices reflects ongoing market uncertainty and negative sentiment that continues to influence investor confidence. Market experts note that fear can make a market decline much faster - once investors see prices falling sharply, some may sell simply because they are worried about further losses, creating a cycle of bad news leading to fear, selling, and falling prices.
