In Short
- Sensex tanks 721 points as volatility rattles investor confidence
- Nifty breaches 24,900 support amid weak global, domestic cues
- Analysts flag muted earnings, caution traders against bottom-fishing bets
Benchmark stock indices ended sharply lower on Thursday, extending their losing streak amid a surge in market volatility and weak global cues.
The S&P BSE Sensex dropped 721.08 points to close at 81,463.09, while the NSE Nifty50 fell 225.10 points to settle at 24,837. Broader market indices also came under heavy selling pressure, with small-cap and mid-cap stocks witnessing steeper losses. Volatility surged through the session, exacerbating the weakness across sectors.
Among Nifty50 constituents, Cipla, SBI Life, Apollo Hospitals, Dr Reddy’s, and Sun Pharma ended as the top gainers. On the flip side, Bajaj Finance, Shriram Finance, IndusInd Bank, Bajaj Auto, and Tech Mahindra were the biggest laggards.
According to Vinod Nair, Head of Research at Geojit Financial Services, “Subdued corporate results and lacklustre global cues triggered a broad-based sell-off across domestic equities. Elevated valuations in large-cap stocks, coupled with significant net short positions held by FIIs, added to the downward pressure.”
He added that sentiment remained fragile amid ongoing uncertainty over U.S.-India tariff negotiations and the European Central Bank’s decision to hold interest rates steady. “Moderation in DII inflows after strong buying over the last 2–3 months, combined with a muted earnings season and persistent FII selling, continues to impact the market,” Nair said.
Ajit Mishra, SVP of Research at Religare Broking, echoed the cautious tone, noting that the market remained under pressure through the day due to earnings disappointments. “Nifty slipped below its immediate support at 24,900 and settled at 24,837. Sectorally, most indices ended in the red, with energy, metal, and auto being the top losers,” he said.
He also flagged the broader market weakness, with the Nifty midcap and smallcap indices falling between 1.63% and 2.16%. “The recent correction reflects growing concerns around earnings disappointments and cautious management commentary, which are weighing heavily on investor confidence. Additionally, continued selling by FIIs is exacerbating the pressure,” Mishra said.
With the Nifty now below 24,900, he pegs immediate support at 24,700, with a more significant base in the 24,450–24,550 zone. “Traders are advised to align their positions with the prevailing trend and refrain from averaging down on loss-making trades,” Mishra added.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
