New Delhi: The stock market sharply dropped on Thursday. The BSE Sensex fell about 750 points from its day’s high, while the Nifty declined below 25,600. Around 12:40 pm, the Sensex fell 749.22 points to 82,984.48, while the broader Nifty plunged 224.85 points to 25,594.50. There market fell as a result of broad-based selling. At the time of writing this article, only 2 of the 30 Sensex stocks (Infosys and TCS) were trading in the Green.
Why Stock Market fell today?
The stocks of Adani Enterprises, Trent, and InterGlobe Aviation declined by up to about 2%. Other shares, including Asian Paints, Adani Ports, Mahindra & Mahindra, Bharat Electronics, Jio Financial, JSW Steel, Power Grid also traded lower. However, after strength in US tech stocks, there was mild buying in IT stocks.
After three consecutive sessions of gains, investors booked profits today, which put pressure on stocks. The 30-share Sensex and 50-share Nifty jumped by about 1.4%, supported by better December-quarter results. Out of 16 major sectors, 13 were down. Small-cap and mid-cap stocks fell 0.1% and 0.4% respectively. The market is currently seeing stock-specific buying, indicating a cautious investment approach. Consolidation is expected in the near term.
Rising crude oil prices
As fears of supply disruptions grew due to simmering US–Iran tensions, crude oil prices jumped. Brent crude stayed around $70 per barrel, while U.S. crude also remained at elevated levels. Higher oil prices can increase the import bill and inflationary pressure, which weakened market sentiment.
The analysts are of the view that the Nifty needs to hold above the 25,900–26,000 range for a stronger rise. Immediate support is expected between 25,700 and 25,660, while 26,000–26,050 is a major resistance zone. Until the Nifty gives a sustained breakout above 26,000, the market may remain volatile and trade within a limited range.
India VIX
India VIX went up about 3.5% to 12.66, indicating increased near-term volatility. February 19 is also the weekly expiry of Sensex contracts, which is another reason for the market’s fluctuations.
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