Sensex Dips 1,062 Points, Nifty Below 22,000; Mid, SmallCap Indices Fall 2%

Sensex Today: Persistent FII selling, coupled with nervousness around the Lok Sabha election results, broke the back of market bulls on Thursday. The S&P BSE Sensex crashed 1,062 points, or 1.45 per cent, to end at 72,404. The Nifty50, too, settled below the crucial 22,000-mark at 21,958, down 345 points or 1.55 per cent.

The indices hit intraday lows of 72,334 (down 1,132 points) and 21,932.4 (down 370 points), respectively.

Weighing on the benchmarks was selling in heavyweights like L&T, HDFC Bank, Reliance Industries, ITC, Asian Paints, ICICI Bank, and Bajaj Finance which dropped in the range of 1 per cent to 7 per cent.

Percentage-wise, L&T, Asian Paints, ITC, JSW Steel, IndusInd Bank, NTPC, Bajaj Finance, HDFC Bank, Tata Steel, Bajaj Finserv, Power Grid, Reliance Industries, and Sun Pharma fell between 2 per cent and 6 per cent.

In the broader markets, the BSE MidCap index declined 2 per cent, and the BSE SmallCap index erased 2.4 per cent.

Among sectors, the Nifty FMCG, Metal, Pharma, and Realty indices shed over 2 per cent each. The Nifty Auto index was the sole winner, up 0.8 per cent.

Santosh Meena, Head of Research, Swastika Investmart Ltd., on why markets are falling?

The market is continuously witnessing pressure ahead of the election outcome. We don’t have any global reason for this correction, while some uncertainty ahead of the big event is causing profit booking in the market. Our market has been largely driven by domestic investors, including both HNIs and institutional investors, for the last few months. Now, they are sitting on the sidelines for the last couple of days and taking some profit off the table ahead of the big event, while FIIs are continuously selling in our market, which is pushing the market lower. The Volatility index, India VIX, has risen 70% from its lows, which is also creating some uncertainty among traders and investors.

Technically, Nifty has support in the 22,000-21,700 zone. An oversold market suggests a potential bounce around this level. However, for a more significant upward move, Nifty needs to break above the 22,500 resistance level.

Global Cues

Across the Asia-Pacific region, markets are displaying mixed sentiment ahead of China’s April trade figures and Japan’s pay statistics.

Japan’s Nikkei saw a modest uptick of 0.26 per cent, while Korea’s Kospi remained largely unchanged. However, Australia’s ASX200 declined by over 0.55 per cent.

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