Sensex plunges 984 points, loses 1,795 points in three consecutive trading sessions

Indian stock market ends on a negative note

The Indian stock market ended on a negative note on Wednesday, with both major indices—Sensex and Nifty—experiencing significant declines. The Sensex fell by 984 points, or 1.25%, closing at 77,690, while the Nifty dropped 324 points, or 1.36%, settling at 23,559.

Over the course of this week, the Sensex has shed 1,795 points or 2.26%, and the Nifty has lost 589 points, or 2.44%. This marks a continuation of the bearish trend, with the markets facing consistent selling pressure across various sectors.

Sectors such as metals, automobiles, and banking were hit particularly hard, contributing to the overall downturn. The market capitalization of all companies listed on the Bombay Stock Exchange (BSE) has dropped by nearly Rs.6 lakh crore, bringing the total market cap to Rs.430 lakh crore.

The selling pressure was not limited to large-cap stocks; mid-cap and small-cap stocks also faced significant losses. The Nifty Midcap 100 index fell by 1,456 points, or 2.64%, closing at 53,800, while the Nifty Smallcap 100 index lost 532 points, or 2.96%, closing at 17,458.

Out of the 30 Sensex stocks, 27 closed in the red. Major losers included M&M, Tata Steel, JSW Steel, IndusInd Bank, Kotak Mahindra Bank, HDFC Bank, Reliance Industries, State Bank of India (SBI), Bajaj Finserv, Axis Bank, ICICI Bank, and Larsen & Toubro (L&T). In contrast, NTPC, Tata Motors, and Infosys were among the few gainers.

According to Vikram Kasat, Senior Research Analyst at Prabhudas Lilladher, the current downturn is the result of persistent selling pressure, particularly from foreign institutional investors (FIIs). “This marks the fifth consecutive session of losses, fueled by sustained foreign investor outflows, disappointing corporate earnings, and rising inflation,” Kasat said, highlighting the negative impact on investor sentiment.

Mandar Bhojane, a research analyst at Choice Broking, noted that a bearish engulfing pattern had formed on the daily chart, signaling increased bearish sentiment in the market. He said the immediate support level for the Nifty is at 23,650, and if this is breached, the index could slip further to 23,400. On the upside, resistance remains strong, with selling pressure expected around the 24,200 mark.

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