The Indian equity markets faced significant declines early on Thursday, influenced by careful global cues and continuous foreign institutional selling following a recent rally. Sensex dropped 671 points, or 0.85%, reaching 77,845, while Nifty decreased by 179 points, or 0.74%, to hit 24,198. Notably, the Nifty Midcap 100 fell by 0.34%, and the Nifty Smallcap 100 by 0.16%, showing a divergence from the benchmark indices.
All sectoral indices, except for pharma and oil and gas, were in the red. Pharma and oil and gas sectors saw gains of 0.71% and 0.02%, respectively, while Nifty auto and consumer durables experienced the most significant losses at 1.03% and 1.61%, respectively. The Nifty’s immediate support zone lies around 24,100–24,000, with resistance observed in the 24,400–24,500 range.
In the previous session, the benchmark indices displayed weakness after being unable to sustain higher levels, with selling pressure particularly evident in banking and financial stocks due to their recent outperformance. IT stocks remained weak, influenced by subdued global cues and market uncertainties, while FMCG, Energy, and other defensive sectors showed more resilience.
President Donald Trump’s extension of a ceasefire with Iran led to gains in the US markets. Trump mentioned that the ceasefire would continue until Iran submits a proposal or concludes talks, while the US military maintains its blockade of Iranian ports. Market participants noted that earnings continue to be a strong tailwind, with Q1 earnings growth tracking positively and forward EPS estimates receiving upward revisions.
Across Asian markets, China’s Shanghai index and Shenzhen both experienced declines, along with Japan’s Nikkei and Hong Kong’s Hang Seng Index. South Korea’s Kospi also faced a loss. In the US, the Nasdaq rose by 1.64%, the S&P 500 by 1.05%, and the Dow Jones by 0.69%. On April 22, foreign institutional investors (FIIs) sold equities worth Rs 2,078 crore in India, while domestic institutional investors (DIIs) were net sellers of equities worth Rs 1,078 crore.
