Headline indices Nifty 50 and Sensex fell sharply after a lacklustre opening on Thursday, pressured by the losses in banking and information technology, as escalating geopolitical tensions resulting from the Russia-Ukraine war dented investor sentiment.
“The downturn was triggered by reports of Russia launching cruise missile attacks on Ukrainian cities, including Odesa, Kropyvnytskyi, and Kharkiv, as reported by Ukrainian news outlets Zerkalo Tyzhnya and Suspilne,” said Vishnu Kant Upadhyay of Master Capital.
The Nifty ended the session down 361 points at 23,914, while the Sensex closed at 79,044, down 1,190 points.
“Technically, a close below 23,800 would be a make or break level for Nifty. Expecting markets to trade sideways with negative biased pressure. On the resistance 24,350 acts a strong resistance any close above this can turn market mood,” said Prashanth Tapse of Mehta Equities.
The Midcap index fared better, ending flat with a modest gain of 28 points at 56,301. However, the Nifty Bank index underperformed, falling 395 points to 51,907.
Heavyweight stocks, including Infosys, HDFC Bank, and Reliance Industries, contributed significantly to the Nifty’s decline. Sectoral indices, except for PSU Bank and Media, ended in the red, with IT and Auto stocks suffering the most.
Adding to the negative sentiment, a sell-off in IT stocks followed weaker-than-expected US PCE inflation data, which dampened hopes of an interest rate cut in the December FOMC meeting. These factors collectively weighed heavily on investor confidence, driving markets lower, Vishnu Kant Upadhyay said.
Of the 50 Nifty constituents, 46 closed lower. Top losers included SBI Life, Infosys, M&M, Bajaj Finserv, and HDFC Life. Life insurance stocks experienced sharp declines after reports suggested that the Insurance Regulatory and Development Authority of India (IRDAI) might impose a cap on business from parent banks.
In contrast, Adani Enterprises emerged as the top gainer on the Nifty, up more than 1%. Other Adani Group stocks had a mixed session, with Adani Ports falling 3% while Adani Total Energy surged 16%.
HDFC Bank’s market capitalization crossed ₹14 lakh crore for the first time, marking a significant milestone for the lender.
In corporate news, NBCC signed a memorandum of understanding (MoU) with HUDCO for ₹600 crore, pushing both stocks up by up to 3%. Ola Electric extended its gains for a second consecutive session, with the stock rising nearly 6%. A positive brokerage note from UBS helped Paytm hit a 52-week high.
ICRA upgraded Indian Overseas Bank’s (IOB) non-convertible securities rating, revising its outlook to positive, resulting in a 3% rise in IOB’s stock. Aster DM Healthcare saw a 2% gain in the last hour of trade after reports suggested an imminent deal with CARE Hospitals.
KEC International surged 3% after securing a ₹1,704 crore order from Power Grid Corporation. Ashoka Buildcon gained nearly 2% following the announcement of a ₹193 crore EPC order in Madhya Pradesh.
Shares of Aditya Vision and Electronic Mart rose by up to 5% after Nuvama initiated a buy call on both stocks. However, Amber Enterprises slipped 7% after Goldman Sachs downgraded the stock to Neutral.
Content retrieved from: https://www.cnbctv18.com/market/nifty-drops-below-24000-sensex-also-plummets-by-1000-points-as-banks-it-stocks-drag-19516279.htm.
