Mumbai, April 24: The Indian stock market experienced a substantial decline for the third consecutive day, driven by rising crude oil prices and escalating tensions between the U.S. and Iran in the Middle East. On Friday, both the BSE Sensex and NSE Nifty 50 recorded losses exceeding 1 percent, reflecting negative market sentiment.
At the close of trading, the BSE Sensex, which tracks 30 stocks, fell by 999.79 points, or 1.29 percent, settling at 76,664.21. Meanwhile, the NSE Nifty 50 dropped by 275.10 points, or 1.14 percent, to close at 23,897.95.
During the trading day, the Sensex opened at 77,483.80 but plummeted to a low of 76,403.87, a decrease of 1,260 points or 1.6 percent. The Nifty opened at 24,100.55 and fell to a low of 23,813.65, down by 359 points or 1.5 percent.
Broad market trends showed significant selling pressure, with the Nifty Midcap index declining by 0.96 percent and the Nifty Smallcap index down by 0.87 percent.
All sectoral indices closed in the red, with the Nifty IT sector experiencing the steepest drop of 5.29 percent. Other sectors also faced declines, including Nifty Media (1.87 percent), Nifty Pharma (1.77 percent), Nifty Realty (1.35 percent), Nifty Healthcare (1.49 percent), Nifty Oil & Gas (0.72 percent), Nifty FMCG (0.73 percent), and Nifty Auto (0.68 percent).
In the Nifty 50 pack, shares of Coal India, Trent, Hindalco, Nestlé India, Shriram Finance, SBI, and Eicher Motors saw gains. Conversely, stocks like Infosys, TCS, Tech Mahindra, HCL Tech, Sun Pharma, and SBI Life recorded declines ranging from 3.2 percent to 6.9 percent.
Market analysts suggest that this week has been challenging for the market. There has been no significant progress regarding the ceasefire in West Asia, and tensions in the Strait of Hormuz remain unresolved. Although there are some positive signals, such as the extension of the Lebanon-Israel ceasefire and ongoing U.S.-Iran negotiations, the overall risk of escalating tensions persists. Domestically, the sharp decline in the IT sector, currency weakness, and foreign investor withdrawals have added further pressure on the market.
A market expert noted that from a technical perspective, the Nifty 50 closed on a weak note. Continuous selling in the first half of the day caused it to slip below the critical level of 24,000, intensifying the decline. It eventually found some support around the 23,800 level before closing slightly higher near 23,900. Technical indicators suggest that the Nifty has fallen below its 20-day EMA, indicating short-term weakness. Additionally, the RSI has dropped below 50 from around 60, reflecting diminishing market strength.
Experts indicate that the 23,800 level remains a crucial support point, while 24,000 has become a strong resistance level. If the Nifty can hold above 24,000, a recovery to 24,200 is possible. However, if it falls below 23,800, the decline could extend to 23,600.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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