Sensex crashes over 900 points, Nifty drops below crucial support level

The S&P BSE Sensex lost 930.55 points to end at 80,220.72, while the NSE Nifty50 was down 309 points to close at 24,472.10. 

In Short

• Sensex fell 930.55 points, Nifty50 down 309 points
• Broad-based selling in banking, auto, metal sectors
• Midcap, smallcap segments declined 2.75%-3.65%

Benchmark stock market indices witnessed a huge decline on Tuesday, after shares tanked in various sectors including banking, auto, and metal.

The S&P BSE Sensex lost 930.55 points to end at 80,220.72, while the NSE Nifty50 was down 309 points to close at 24,472.10.

Ajit Mishra – SVP, Research, Religare Broking Ltd said that the markets continued their downward trend, losing over a percent in an ongoing corrective phase.

"After a flat opening, Nifty gradually declined and approached a crucial support level at the 100-day exponential moving average (DEMA). The selling pressure was broad-based, with realty, metal, and auto sectors among the worst affected. Notably, the midcap and smallcap segments saw a sharp decline, shedding between 2.75% and 3.65%," he added.

In today's trading session on the Nifty50, ICICI Bank led the gainers with a rise of 0.74%. Nestle India showed marginal strength, rising by 0.10%, while Infosys edged up slightly by 0.04%.

On the declining side, Bharat Electronics Limited (BEL) witnessed the steepest fall, dropping 3.79%, followed by Mahindra & Mahindra (M&M) which declined 3.63%. Coal India saw a significant decline of 3.36%, while Adani Enterprises fell by 3.29%. State Bank of India (SBI) rounded off the top losers with a decline of 2.97%.

"Nifty has now corrected by around 7% from its record high, reaching the critical moving average support at the 100 DEMA i.e. 24,485 level. The outlook suggests further downside, particularly in the midcap and smallcap spaces. On the index front, the next major support is around 24,000, with potential resistance between 24,700 and 25,000 in case of a rebound. We recommend adjusting trades accordingly and advise against adding to losing positions," said Mishra.

All sectoral indices traded in negative territory today, with Nifty PSU Bank experiencing the steepest decline of 4.18%. Nifty Realty also faced significant pressure, falling 3.38%, while Nifty Metal dropped 3.00%.

The auto sector witnessed heavy selling with Nifty Auto declining 2.47%. Nifty Media slumped 2.55%, while Nifty Consumer Durables fell 2.38%. The oil and gas sector wasn't spared either, with Nifty Oil & Gas declining 2.36%. Banking and financial indices showed weakness across the board - Nifty Bank fell 1.36%, Nifty Financial Services dropped 1.06%, Nifty Financial Services 25/50 declined 1.41%, and Nifty Private Bank shed 0.97%.

Healthcare-related indices also declined with Nifty Midsmall Healthcare falling 2.17%, Nifty Healthcare Index dropping 1.28%, and Nifty Pharma declining 1.27%. Nifty FMCG showed relatively better resilience though still negative, falling by 0.46%, while Nifty IT declined 0.78%.