Sensex Tanks 885 Points, Nifty Ends Near 24700; Auto, IT Fall

Sensex Today: Benchmark equity indices – the BSE Sensex and the NSE Nifty50 – ended the week’s last trading session in the negative territory amidst weak global cues. Sensex plunged 885 points or 1.08 per cent to 80,981, while Nifty50 too gave up the 24,000 levels to settle at 24,717, down 293 points or 1.17 per cent.

42 out of the 50 constituent stocks on Nifty50 ended in the red, with Eicher Motors, Tata Motors, Maruti Suzuki India, and JSW Steel being the top laggards, falling up to 5 per cent. Divis Labs, HDFC Bank, Dr Reddy’s Labs, Sun Pharma, and Britannia Industries, on the other hand, were the top gainers on the index.

On the BSE, Maruti Suzuki India, Tata Motors, JSW Steel, and Larsen & Toubro were the top losers, while HDFC Bank, Sun Pharma, and Nestle India managed to settle with some gains.

Broader indices settled in the red, with Midcap shares being the worst hit. Among the sectors, Auto, IT, and Metal were the top losers, with losses of up to nearly 1 per cent. On the contrary, Pharma and Healthcare shares eke out to end with some gains.

Market View| Why is the Indian stock market falling today by Gour, Senior Technical Analyst at Swastika Investmart Ltd.

The Indian stock market experienced a significant decline today, with the Sensex falling over 800 points and the Nifty dropping 255 points. Several factors contributed to this downturn:

Negative global sentiment played a crucial role. A sell-off on Wall Street, coupled with concerns over a potential US recession and weak commentary from the top IT companies in the US, led to a cautious approach among investors. Negative economic data from major economies like the US and China also impacted investor sentiment.

Central bank actions also played a pivotal role. The central bank of Japan raising interest rates to combat inflation contributed to market volatility. Such moves can lead to shifts in global capital flows and increased nervousness among investors.

On the domestic front, the India VIX, often referred to as the fear index, rose, indicating higher market volatility. This spike in the fear index reflects increased nervousness and uncertainty among investors.

Technical Outlook

Technically, Nifty has shown some bounce back from the important level of 24750. Now 20-DMA of 24600 will be the key support level. 25000 will act as a key barrier after a gap-down opening.

Banknifty is underperforming and trading below the 20-DMA of 52000. 51000 and 50450 will be immediate support levels. 49500 will be the next key support level.

Global Cues

In the US, markets experienced a sell-off amid rising recession fears, with the Dow Jones falling 1.21 per cent, the S&P 500 decreasing 1.37 per cent, and the Nasdaq sliding 2.3 per cent. Further, reports suggest that concerns are growing over whether the Federal Reserve is too late in adjusting its monetary policy.

Asian markets mirrored Wall Street’s losses, with the Nikkei plummeting over 5 per cent, the Kospi dropping 2.5 per cent, and the ASX 200 falling 1.83 per cent.