Indian equity benchmarks witnessed a sharp sell-off on Thursday, with the Sensex plunging nearly 500 points and Nifty falling below the 24,750 mark, primarily dragged down by auto stocks, following Bajaj Auto’s weak festival sales commentary.
The 30-share BSE Sensex closed at 81,006.61, down 494.75 points or 0.61 per cent, while the broader NSE Nifty declined 221.45 points or 0.89 per cent to end at 24,749.85. The market breadth remained significantly negative, with 2,690 stocks declining against 1,272 advances on the BSE.
Two-wheeler manufacturer Bajaj Auto emerged as the biggest laggard, plummeting 13.11 per cent after reporting disappointing festival sales. The negative sentiment spilled over to other auto stocks, with Mahindra & Mahindra falling 3.52 per cent and Hero MotoCorp declining 3.39 per cent.
“Markets continued its downward trajectory despite firm US and European cues, as foreign fund selling coupled with a sharp fall in automobile stocks ahead of the final day’s IPO subscription of Hyundai weighed on sentiment,” said Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd.
The information technology sector stood out as the lone bright spot, with Infosys and Tech Mahindra gaining 2.84 per cent and 2.81 per cent respectively. Other notable gainers included Power Grid (1.21 per cent), L&T (0.95 per cent), and SBI (0.73 per cent).
Infosys led the gainers among Sensex stocks, rising by 2.58 per cent to ₹1,969.50, followed by Tech Mahindra (+2.39 per cent) and Power Grid (+1.30 per cent). L&T and SBI also gained 1.02 per cent and 0.63 per cent, respectively. On the losing side, Nestle India dropped by 3.35 per cent, while Mahindra & Mahindra fell 3.34 per cent. UltraTech Cement, Bajaj Finserv, and Titan also declined by 2.70 per cent, 2.28 per cent, and 1.99 per cent, respectively.
The broader market indices underperformed the benchmarks, with Nifty Next 50 falling 2.23 per cent and Nifty Midcap Select declining 1.24 per cent. The banking sector also faced pressure, with Nifty Bank dropping 0.99 per cent to 51,288.80.
“The bears looked determined and well in control right from the open and effortlessly took prices lower the entire day,” noted Tejas Shah from JM Financial & BlinkX, adding that “Support for Nifty is now seen at 24,700-750 and 24,500.”
Market volatility increased as indicated by the India VIX, which rose 2.87 per cent to 13.43. The market saw 245 stocks hitting 52-week highs, while 35 touched their 52-week lows.
Ameya Ranadive, Sr Technical Analyst at StoxBox, attributed the sell-off to “Bajaj Auto’s comment on the weak festival sales, which rippled through the sector. This factor added to the effect of FIIs diverting their funds to China, worsening the market sentiment.”
Looking ahead, Ajit Mishra, SVP Research at Religare Broking Ltd., cautioned that “participants will react to the results from major companies like Infosys and Axis Bank, as any negative surprises could further dampen market sentiment.”
The market’s technical outlook remains bearish, with Hrishikesh Yedve of Asit C. Mehta Investment Interrmediates Ltd. noting that “if Nifty sustains below 24,690, further downside could be likely, taking it towards 24,500–24,400 levels.”
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