The Indian stock market faced a sharp decline today, with the benchmark NIFTY50 index falling below the 22,600 mark and the SENSEX dropping over 600 points. Heavy selling pressure in key sectors such as banking and pharmaceuticals contributed to the downturn.
As of 1:30 pm, NIFTY50 was trading at around 22,572, down by 0.80%, while SENSEX had dropped more than 650 points to trade around 74,417.
Banking heavyweights such as HDFC Bank (-1.0%), ICICI Bank (-1.1%), and Kotak Bank (-0.9%) led the market decline, dragging down overall market performance.
Market analysts attribute the weakness to weak global cues, particularly concerns over the US inflation rate, which accelerated to 3.5% in March 2024. This heightened fears that potential interest rate cuts could be delayed.
In addition, rising US bond yields and higher crude oil prices, with Brent Crude oil trading near $91 per barrel, added to market worries.
Out of the NIFTY50 constituents, 43 stocks were in the red. Sun Pharma (-4.0%), Maruti (-2.3%), and Titan (-1.9%) were among the top losers, while Eicher Motors (+1.1%), Divi’s Lab (+0.7%), and Tata Motors (+0.7%) recorded gains.
All sectoral indices were in negative territory, with NIFTY Pharma (-1.4%), Bank (-0.74%), and Financial Services (-0.80%) experiencing the largest losses.
In other news, the Asian Development Bank (ADB) revised its GDP growth forecast for India from 6.7% to 7%, citing robust growth due to public and private sector investment and a gradual improvement in consumer demand.
Sun Pharma (-4.0%) shares declined after the USFDA issued an Official Action Indicated (OAI) status for its Dadra facility, signaling possible regulatory action.
Vodafone Idea’s shares dropped by 4.2% after announcing plans to raise ₹18,000 crore through a follow-on public offer (FPO) with a price band of ₹10 to ₹11 per equity share.
On the other hand, Bharti Hexacom had a strong market debut, with shares listing at a 32.4% premium of ₹755 compared to an issue price of ₹570 per equity share on the NSE and BSE.
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