Equity markets witnessed a sharp decline on Thursday, with the BSE Sensex plunging 964.15 points (1.20 per cent) to close at 79,218.05, while the Nifty 50 fell 247.15 points (1.02 per cent) to end at 23,951.70, marking the fourth consecutive session of losses.
The market capitalisation of BSE-listed companies decreased by ₹2.73 lakh crore to ₹449.87 lakh crore, reflecting the broad-based selling pressure across sectors.
Among the sectors, pharmaceuticals emerged as the sole major gainer, while IT, financials, and metals faced significant selling pressure. Dr Reddy’s Laboratories led the gainers on the NSE, surging 4.04 per cent, followed by Cipla (2.15 per cent), BPCL (2.05 per cent), Sun Pharma (1.12 per cent), and Apollo Hospitals (1.04 per cent). On the losing side, Bajaj Finserv dropped 2.33 per cent, followed by JSW Steel (-2.31 per cent), Bajaj Finance (-2.25 per cent), Grasim (-2.20 per cent), and Asian Paints (-2.15 per cent).
The market downturn was primarily attributed to the U.S. Federal Reserve’s hawkish stance on interest rates. “The Indian market saw a widespread decline following a global sell-off driven by the US Fed’s hawkish stance on interest rates. Sectors sensitive to interest rates, such as banking and real estate, significantly bore the brunt,” said Vinod Nair, Head of Research at Geojit Financial Services.
According to echanges’ provisional data FIIs/FPIs recorded a net outflow of ₹4,224.92 crore on Thursday, on the back of dollar strengtheneing agaist rupee.
The selling pressure was amplified by foreign institutional investors’ outflows, with concerns over accelerated withdrawals in the near term. “Markets may see renewed downtrend in the near term as it adjusts to prospect of lower pace of rate cuts while growth and inflation uncertainties rise,” noted Satish Chandra Aluri from Lemonn Markets Desk.
The broader market showed relative resilience, with the Nifty Midcap Select declining marginally by 0.03 per cent to 13,027.20, while the Nifty Bank index fell 1.08 per cent to 51,575.70. Market breadth remained negative, with 2,312 stocks declining against 1,682 advances on the BSE, while 101 remained unchanged.
The volatility in currency markets added to the pressure, with the Indian rupee hitting record lows against the strengthening U.S. dollar. “Rising US bond yields has pushed global currencies, including the rupee to new lows while renewed foreign fund outflows from domestic equities could prompt investors to turn risk averse,” explained Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
Technical analysts noted key support levels for the market. “The 200-Days Simple Moving Average (200-DSMA) is positioned near 23,825, making the 23,800-23,825 zone a strong short-term demand area,” said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd.
The market sentiment was also influenced by the Bank of Japan’s decision to maintain steady interest rates, which helped reduce some selling pressure. However, investor caution persisted amid continuous FII selling and the strategic shift towards defensive sectors like pharmaceuticals.
Out of the 4,095 stocks traded on the BSE, 221 stocks hit their 52-week high, while 56 touched their 52-week low. Additionally, 331 stocks hit the upper circuit, while 225 stocks hit the lower circuit during the trading session.