The domestic stock market continued the bullish run for the second day this week as the key equity indices--Sensex, Nifty--were trading significantly lower on Tuesday, September 8. Last seen, BSE Sensex was trading 378.22 points or 0.50 per cent lower at 75,754.59, while Nifty50 was quoted at 23,675. 20, down 103.85 points or 0.44 per cent.

What Caused Downward Trend In Share Market

According to analysts, three factors are weighing on investors' sentiment:

1-Elevated crude prices

2-Persistent selling in IT stocks

3- Concerns around a Fed rate hike

“The market is now in the fifth week of a slow but steady downtrend. Elevated crude prices, selling in IT stocks, fears of a Fed rate hike this month and a booming IPO market, which is sucking lots of money, have contributed to this slow grind down in the market. Since the macro construct which contributed to this downtrend persists, the downtrend may continue in the near-term," Dr V K Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.

But this trend is opening up opportunities for investors in large-caps, which continue to remain weak despite improving fundamentals, Vijayakumar added.

A major factor contributing to the weakness of large-caps, despite their attractive valuations, is that most steady monthly SIP inflows are going to the mid- and small-cap segments despite their elevated valuations.

Technical Outlook

"Despite slipping to the lowest point since late July, the consolidation in the second half of yesterday gives hope towards recovery attempts. However, we will need confirmation from a break beyond 23860 to signal recovery attempts, while the downside marker is placed at 23720," Anand James, Chief Market Strategist, Geojit Investments Limited.

As maintained yesterday, systematic slippage over the last few days has rendered the trend vulnerable, exposing supports at 23570 and 23260, James added.

Crude prices traded slightly higher in early trade. Last seen, Brent crude, the global oil benchmark, was at a level of $97.52 per barrel.

Top Losers And Gainers

Mahindra & Mahindra, Bharti Airtel, ICICI Bank, Maruti Suzuki, Trent, Sun Pharma, Axis Bank, and Tata Consultancy Services were the major losers in the 30-share Sensex basket.

On the other hand, BEL, Eternal, Hindustan Unilever, Adani Ports and Bajaj FinServ were the top gainers.

Asian Market

In Asian markets, South Korea's Kospi, Japan's Nikkei 225 index and Shanghai's SSE Composite were doing business in positive territory. Meanwhile, Hong Kong's Hang Seng index traded lower.