Mumbai — Indian stock markets fell sharply Thursday as investors turned cautious amid firm crude oil prices and a global bond market selloff, with banking and financial stocks among the hardest hit.
The Sensex dropped 1,247.71 points, or 1.67 percent, to close at 73,580.54. The Nifty fell 383.70 points, or 1.64 percent, to settle at 23,063.10.
Market analysts said a sustained close below 23,000 on the Nifty could push the index toward the 22,900 to 22,800 range, while 23,200 is expected to serve as immediate resistance during any recovery.
“Momentum indicators remain weak, with the RSI around 31, reflecting strong negative momentum and approaching oversold territory. The MACD remains deeply in negative territory, confirming continued weakness,” market watchers said.
Analysts also pointed to weakness in the options market, with Call open interest at about 23.84 crore compared with Put open interest of roughly 17.23 crore. Significant Call open interest was seen around the 23,200 and 23,500 levels, while Put open interest was concentrated near 23,000.
Selling extended across the broader market. The Nifty MidCap index ended 2.25 percent lower, while the Nifty SmallCap index declined 1.53 percent.
Among Nifty stocks, all but three finished the session in negative territory. Bajaj Finance, HDFC Life Insurance Company and Axis Bank were among the biggest laggards and contributed significantly to the decline in the benchmark indices.
Financial stocks led the sectoral losses. The Nifty Financial Services, Nifty Bank and Nifty Private Bank indices were among the worst performers as rising bond yields and global uncertainty weighed on investor sentiment.
Defensive sectors showed somewhat greater resilience but also closed lower. The Nifty Media and Nifty Pharma indices posted comparatively smaller declines than the broader market.
Market experts said investors remained cautious over elevated oil prices and the global bond selloff, which fueled risk-off sentiment and prompted traders to reduce their exposure to equities. (Source: IANS)
