Equity benchmark Sensex faced a sharp decline on Thursday, dropping almost 900 points and falling below the 64,000 mark. The market experienced a widespread selloff amid increased tensions in the Middle East, combined with sluggish global market trends. Additionally, auto, financial, and energy stocks incurred significant losses, and foreign investors engaged in fresh selling, further contributing to the overall negative sentiment.
In line with the Sensex’s decline, the Nifty50 also slipped almost 1,000 points in the past six trading sessions, finishing 1.39% down at 18,857.25. Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities, stated that unless the index surpasses the 19,000 mark, the weak sentiment is expected to persist, potentially reaching levels between 18,800 and 18,725. On a positive note, a relief rally may occur once the 19,000 level is breached, with the index possibly moving up to 19,100-19,150.
Specifically, the 30-share BSE Sensex plummeted by 900.91 points or 1.41%, settling below 64,000 at 63,148.15. Throughout the day, it experienced a maximum decline of 956.08 points or 1.49% to 63,092.98. Since October 17, the BSE benchmark has tumbled 4.93%, equivalent to 3,279.94 points, while the Nifty has fallen 4.81%, or 954.25 points.
Among the companies listed on the Sensex, Mahindra & Mahindra incurred the greatest losses, falling by 4.06%. Other significant losers included Bajaj Finserv, Asian Paints, Nestle, JSW Steel, Titan, HDFC Bank, Tech Mahindra, Tata Motors, and Larsen & Toubro. Conversely, Axis Bank, ITC, HCL Technologies, NTPC, and IndusInd Bank emerged as the gainers during this period.
As for the global scenario, Seoul, Tokyo, and Hong Kong’s stock markets closed lower, while Shanghai ended on a positive note. European markets also experienced substantial losses, and the US markets concluded Wednesday in negative territory. Furthermore, the global oil benchmark, Brent crude, witnessed a decline of 0.65% and reached USD 89.54 per barrel.
According to exchange data, Foreign Institutional Investors (FIIs) sold equities worth Rs 4,236.60 crore on Wednesday. On the previous day, the BSE benchmark had declined by 522.82 points or 0.81% to settle at 64,049.06, while the Nifty fell by 159.60 points or 0.83% to 19,122.15.
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