The Indian equity markets saw a significant decline for the second consecutive day on Thursday, with benchmark indices dropping by about 1%. The Sensex ended at 77,664, down 852 points, while the Nifty closed at 24,173, losing 205 points, as selling pressure intensified across various sectors including auto, banking, IT, and realty stocks.
During the session, the Sensex fell by as much as 1.2% to reach an intraday low of 77,574, while the Nifty dropped nearly 1% or 243 points to 24,134.80. Sector-wise, indices like Nifty Auto, Nifty PSU Bank, Nifty Consumer Durables, Nifty Realty, and Nifty IT witnessed declines of up to 2%, leading the losses.
On the contrary, defensive sectors like Nifty Healthcare and Nifty Pharma showed some resilience, gaining up to 2%. The broader market indices also ended in the red, with Nifty 100 declining by 0.93%, Nifty 200 falling by 0.83%, and the Nifty 500 index slipping by 0.79%, reflecting the overall market pressure.
Mid-cap and small-cap segments also experienced selling pressure, with Nifty Midcap 50 down by 0.71%, while both Nifty Smallcap 100 and Nifty Smallcap 50 fell by 0.6% each. Additionally, the volatility tracker index India VIX rose by 1.58% to nearly 20.
Market analysts attributed the weakened sentiment to escalating geopolitical tensions, uncertainty over Iran ceasefire talks, and ongoing disruptions at the Strait of Hormuz. Factors like rising crude prices, rupee depreciation, and institutional selling have contributed to a risk-off environment, they noted.
Experts highlighted that the Nifty index faced resistance near the 24,300 level, which has now turned into an immediate resistance band in the 24,300–24,400 range. They emphasized that this zone continues to act as a key supply area, indicating persistent selling pressure at higher levels. On the downside, the 24,100–24,000 range is seen as immediate support, with a break below potentially accelerating the decline towards the 23,800 level.
Furthermore, currency experts mentioned that the rupee weakened beyond the 94 mark due to strong dollar demand and a shift towards safe-haven assets, exacerbated by rising crude prices and a strong US dollar. Global cues remained negative, with Brent crude climbing around 4% to $105.86 per barrel, driven by supply concerns linked to geopolitical tensions.
