Indian Stock Market Sees Worst Monthly Decline Since March Amid Global Economic Pressures
The Indian stock market saw its steepest monthly decline since March, with the Nifty 50 and Sensex falling 6.1% and 5.8%, respectively. The rupee also weakened against the dollar, while benchmark bond yields rose.
The downturn was attributed to rising crude oil prices and interest-rate hikes by major global central banks. This made emerging-market assets less attractive, putting pressure on Indian equities and currencies.
Market analysts expect any recovery to face resistance from persistent Middle East risks. They also cautioned that the sustainability of a rebound would depend on an improvement in corporate earnings.
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities, noted that the Nifty 50's underlying trend remains negative. He predicted a further decline to 22,200-22,100 levels if the index falls below 22,500.
Two stocks of interest are Cyient and Max Healthcare. Shetti recommends buying Cyient at ₹1,098 with a target of ₹1,185 and stop-loss at ₹1,050, expecting an upside in the next two to three weeks. Conversely, he advises selling Max Healthcare Institute at ₹925 with a target of ₹870 and stop-loss at ₹955 for the same timeframe.