Indian benchmark indices, the Sensex and Nifty, experienced significant declines during Thursday's opening bell, extending the losses observed in the previous session. The downturn mirrored a broader weakness across global markets, exacerbated by escalating geopolitical tensions in West Asia, which have kept crude oil prices elevated.
In early trading at 9:18 am, the BSE Sensex fell by 295.61 points, or 0.40%, to 74,050.56, after briefly crashing as much as 538 points. Simultaneously, the NSE Nifty declined by 76.30 points, or 0.33%, to 23,329.30, having touched an intraday low of 23,247.30.
Top Index Losers
Among the constituents of the Sensex, technology giants Infosys and HCL Technologies were prominent losers. Infosys slumped 1.78% to Rs 1200.50, while HCL Technologies saw a 1.31% decline. Other major stocks contributing to the market's fall included Mahindra & Mahindra (M&M), HDFC Bank, and Bajaj Finserv, which slipped 0.95%, 0.71%, and 0.64% respectively.
Factors Driving the Downturn
Market analysts attributed the continued pressure to several factors. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Ltd., highlighted the sustained uncertainty in West Asia and persistent selling by Foreign Portfolio Investors (FPIs) as significant headwinds. Vijayakumar noted, "In the absence of any resolution of the West Asia crisis, there is no scope for a healthy rally in the market. The bullish undertone of the booming markets in US, Japan, South Korea and Taiwan suggests more FPI selling in India."
Global Market Weakness
The domestic market's performance was in line with broader global trends. Major Asian markets traded lower, with Japan’s Nikkei 225 plunging 1.90%, South Korea’s Kospi declining 1.23%, and Hong Kong’s Hang Seng falling 1.35%. Overnight, Wall Street also closed in the red, with the S&P 500 down 0.74%, the Dow Jones Industrial Average slumping 1.21%, and the Nasdaq Composite plunging 0.89%.
Previous Session's Performance and Outlook
On Wednesday, the Sensex had already declined by 303.67 points (0.41%) to settle at 74,346.17, while the Nifty slipped 77.95 points (0.33%) to close at 23,405.60.
Looking ahead, Gaurav Udani, Founder of Thincredblu Securities Pvt Ltd., commented on crucial support levels. "The index is now approaching a crucial support zone of 23,000–23,200, which will be important to watch. A sustained move below this range could trigger further selling pressure and extend the ongoing weakness," Udani stated. He added that on the upside, 23,500–23,600 would act as an immediate resistance zone, where any recovery might face renewed selling pressure.