The Sensex plunged 823 points, closing at 81,691.98, while the Nifty 50 slipped below 24,900
Sensex Tanks 823 Points, What’s Driving the Market Down?
The Indian stock market witnessed a sharp decline today, as the Sensex crashes 823 points to close at 81,691.98, while the Nifty 50 dropped 253 points, settling at 24,888.20. The sell-off wiped out nearly ₹5 lakh crore in investor wealth, marking one of the worst trading sessions in recent weeks. Analysts attribute the downturn to weak global cues, profit booking, and escalating geopolitical tensions.
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Global Uncertainty Weighs on Investor Sentiment
The market downturn comes amid rising geopolitical tensions in the Middle East, with reports indicating potential military escalations. Additionally, hawkish central bank commentary from the U.S. Federal Reserve has fueled concerns over interest rate hikes, leading to a risk-off sentiment among investors. European and Asian markets also witnessed declines, further dampening sentiment in Indian equities.
Sector-Wise Performance: Who Took the Biggest Hit?
The sell-off was broad-based, with auto, energy, and consumer durables among the worst-hit sectors. Mid- and small-cap stocks also saw deeper cuts, amplifying the market-wide decline. Notable losers included Tata Motors, Titan, and Coal India, each falling over 3%. Meanwhile, IT stocks showed resilience, with Infosys and TCS managing to limit losses.
Technical Analysis: Key Support and Resistance Levels
Market experts suggest that Sensex faces strong resistance at 82,700, while Nifty 50 struggles to hold above 25,000. If the indices fail to reclaim these levels, further downside could be expected. The India VIX, a measure of market volatility, also surged, indicating heightened uncertainty.
What’s Next for Investors?
With global markets in turmoil, analysts recommend caution and selective buying. Defensive sectors like pharma and FMCG may offer stability, while long-term investors could consider accumulating quality stocks at lower levels. The upcoming U.S. inflation data and Federal Reserve policy meeting will be crucial in determining market direction.
Conclusion:
A Volatile Road Ahead The Sensex’s sharp decline underscores the fragility of global markets, with geopolitical risks and monetary policy decisions playing a pivotal role. As investors brace for continued volatility, strategic portfolio adjustments and risk management will be key to navigating the uncertain landscape
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