Indian stock markets ended Thursday’s trading session deep in the red as both the benchmark indices witnessed a sharp fall. The Nifty 50 closed 150 points lower, dipping below the 25,100 level, while the Sensex declined by 540 points to end the day at 82,180. Analysts attributed the sell-off to profit booking and pointed to technical resistance near the 25,250 level.
The broader market followed suit, with the Nifty Bank ending 145 points lower at 57,066. The BSE Midcap index dropped by over 200 points, closing at 46,658, and the BSE Smallcap index lost nearly 275 points to end at 54,940. The overall market sentiment remained weak throughout the session, with a majority of stocks trading in the negative territory.
Technical experts noted that the market faced strong resistance at higher levels and failed to sustain gains from earlier in the week. Shrikant Chouhan, Head of Equity Research at Kotak Securities, observed that a bearish candle had formed on the daily chart, indicating downward momentum. He further explained that a lower top pattern had developed on intraday charts, which usually signals more weakness in the near term.
While the short-term texture of the market looks fragile, Chouhan added that a deeper correction is likely only if the Nifty decisively breaches the 25,000 mark. On the other hand, Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the Nifty fell below its 50-EMA on hourly charts, suggesting continued range-bound movement. According to De, the key support to watch is around 24,900, and a drop below this level could intensify the correction. If the market holds above 25,260, however, a fresh rally could still be possible.
In terms of market activity, over 3,000 stocks were traded during the day. Out of these, 1,111 stocks advanced, while 1,862 declined, and 84 remained unchanged. Around 72 stocks managed to hit fresh 52-week highs, whereas 29 stocks slumped to new 52-week lows, reflecting the mixed but predominantly bearish tone of the session.
Despite the overall downtrend, a few stocks stood out. Zomato led the gains on the Nifty 50, rising 3.44 percent, followed by strong performances from Dr Reddy’s Laboratories, Tata Motors, Tata Consumer Products, and Cipla. Meanwhile, the biggest losers of the day included Nestle India, Trent, Tech Mahindra, Shriram Finance, and Reliance Industries.
The session also saw some major movement in the market capitalisation of large business groups. The Anil Ambani Group took a significant hit, losing nearly 5 percent in market value, following Enforcement Directorate raids on its properties in Mumbai. On the positive side, the Pennar Group posted gains, with its overall market capitalisation rising by 3.72 percent. Pennar Industries led the pack, climbing as much as 3.8 percent. Other gainers in terms of group performance included the Bhartia Group and the Jindal OP Group.
Sector-wise, the Fertiliser segment emerged as the top performer, with a market capitalisation gain of 2.3 percent. This was followed by the Auto Ancillaries, Plastic, Rubber, and Internet and E-Commerce sectors, all of which posted modest gains despite the market downturn. This performance indicates a rotation of funds into select sectors even during broad-based selling.
As investors digest this volatility, market experts advise caution. With critical technical levels being tested and global factors influencing sentiments, short-term trades must be closely monitored. The coming sessions could be decisive in determining whether the recent fall is merely a breather or the beginning of a deeper correction phase.
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