There was a significant decline in the market on the first trading day of the week. Sensex and Nifty remained under pressure due to tension in West Asia, rising crude oil prices, selling by FIIs and the impact of PM Modi’s appeal. The biggest weakness was seen in the stocks of jewellery, aviation, banking and realty sectors, while buying was seen in some selected defensive and earnings focused stocks. Nifty touched a six-session low today and closed around 23,800. At market close, Sensex fell 1,312 points to 76,015 and Nifty fell 360 points to 23,815. Bank Nifty fell 870 points to 54,439. Meanwhile, Midcap and Smallcap indices also fell more than 1%.
Where did the market fall today and where did it rise?
Among the sectoral indices, consumer durables shares were most under pressure and fell 3.24%. Realty index closed 2.70% lower and PSU Bank index 2.12% lower. The Oil and Gas index also fell 1.73%. Among Nifty 50, Interglobe Aviation was the biggest loser; Rising crude oil prices – which topped $105 a barrel – put pressure on aviation stocks, causing them to fall nearly 5%. SBI fell 4.62% and Bharti Airtel fell 4.18%. Eternal also fell more than 4% amid reports that Zepto has received approval for its IPO.
In contrast, Tata Consumer Products was the biggest gainer on the Nifty, rising nearly 8%. Buying interest in these stocks increased due to strong quarterly results and strong guidance for FY27. Defensive stocks like Max Healthcare, Coal India and Sun Pharma also showed strength. Among stocks reacting to the earnings results, Advanced Enzyme Technologies rose about 13%, while Northark Capital also gained about 10%. Meanwhile, Swiggy fell 5% and ABB India fell nearly 9% due to weak market sentiment and profit booking.
PM Modi’s appeal to ban the purchase of gold had the biggest impact on jewelery stocks. Titan fell about 6.7%, while Kalyan Jewelers fell more than 9%. Heavy selling pressure was also seen in stocks like Shringar House of Mangalsutra and Bluestone. The market fears that if gold demand slows down, it could have a negative impact on the growth prospects of jewelery companies.
Among the biggest falling stocks, stocks like Jyoti Labs, Tejas Networks and GSPL also came under heavy pressure. In contrast, Vodafone Idea gained about 8.5%. Reports suggest that Vodafone Group is considering options to increase its equity stake in the company. Syngene International, Abbott India and Vardhman Textiles also saw good gains.
Why did the market fall so rapidly?
1. Rising crude oil prices weakened market sentiment.
2. There were no positive developments regarding the ongoing conflict.
3. Rupee fell by 70 paise more today.
4. India VIX (Volatility Index) rose by 8%.
5. Heavy selling pressure by FIIs (Foreign Institutional Investors).
6. Sentiment weakened as the market failed to sustain above 24,000 levels.
7. Mid-cap and small-cap stocks finally got a jolt today.
8. Bank Nifty also remained below the level of 55,000.
9. Capital goods shares fell due to ABB’s weak earnings results.
10. Heavy selling pressure was seen in interest rate sensitive stocks.
As soon as the market opened today, it seemed as if it was collapsing. Sensex fell by 900 points. Nifty also fell by more than 250 points and was trading around 23,900 levels. Bank Nifty also fell by more than 600 points and was trading around 54,700.
India VIX jumped up to 10% and settled around 18.55. Broader market indices also slipped into the red today. Midcap and smallcap indices declined about 1% each. The sharpest decline was seen in the consumer durables sector, where the index fell more than 2%. Heavy selling pressure was seen in stocks like Titan, Kalyan Jewellers, Voltas, Dixon and Amber in this index. Apart from this, a significant decline was also seen in the auto and real estate sectors. As a result, all the sectoral indices closed in the red.
In the Nifty 50 index, Titan, Indigo, SBI, Shriram Finance, M&M, Eternal, Maruti, Jio Financials and Bajaj Auto were among the biggest losers of the day. On the contrary, Tata Consumer, JSW Steel, ONGC, Wipro and HCL Tech were the only stocks that gained the most. The mood in the global market seems weak amid the ongoing crisis in the Middle East. GIFT Nifty is currently trading around 24,024, down more than 200 points, while Dow futures are also showing signs of weakness. On the other hand, Prime Minister Narendra Modi’s appeal to save foreign exchange reserves has become a big topic of discussion, sparking a new debate on both the markets and the broader economy.
