Nifty Drops 0.5% on Expiry Day Amid Crude Surge, Fed Hike Fears and Institutional Selling
· Business · LiveMint, Moneycontrol
The Nifty 50 index fell 122 points (0.5%) to an intraday low of 23,657.15 on Tuesday, September 8, as geopolitical tensions in the Middle East, rising crude oil prices near $97 per barrel, and renewed concerns over a potential US Federal Reserve rate hike weighed on investor sentiment. The Sensex also declined by 436 points (0.56%), closing at 75,697.02, amid heightened volatility on the expiry day of index derivatives, which triggered institutional selling and sharp intraday movements. V K Vijayakumar of Geojit Investments noted the market is in its fifth week of a slow downtrend, driven by crude price pressures, IT stock selling, Fed rate-hike fears, and strong IPO activity. The expiry day’s volatility, combined with macroeconomic uncertainties, has left large-cap stocks weak despite improving fundamentals, raising concerns about near-term market stability. Traders are advised to monitor support and resistance levels closely as expiry-related activity intensifies.
Why it matters
Retail and institutional investors face heightened risk exposure as crude oil prices and Fed rate-hike expectations continue to pressure Indian equities, potentially leading to further market corrections. The weakness in large-cap stocks could impact long-term investor confidence and portfolio valuations, while traders must navigate sharp price swings around expiry dates.
Read the original report — LiveMint
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