Indian benchmark stock market indices experienced a sharp decline on Thursday, November 28, with the Sensex plunging over 1,300 points and the Nifty slipping below the 23,900 mark. The market downturn was primarily driven by escalating geopolitical tensions related to the Russia-Ukraine war.
The broader NSE Nifty dropped over 400 points, hitting a day's low of 23,873.35, while the 30-share BSE Sensex declined 1,100 points to trade at 79,073.69.
The total market capitalisation of all listed companies on the BSE fell by ₹82,000 crore.
Volatility spiked during Thursday's session, with IT, auto, and banking stocks bearing the brunt of the selling pressure.
As it was F&O expiry day, the market witnessed heightened volatility.
"Technically, a close below 23,800 would be a make or break level for Nifty. Expecting markets to trade sideways with negative biased pressure. On the resistance 24,350 acts a strong resistance any close above this can turn market mood," said Prashanth Tapse of Mehta Equities.
More than 40 stocks on the Nifty are trading with losses today and these are the top contributors to the downside on the index. It should be noted that the index has surged more than 1,000 points from last Thursday's low ahead of and after the Maharashtra election outcome.
The Indian IT stocks were also witnessing profit booking after the US IT stocks faced significant pressure. The US Federal Trade Commission has launched an antitrust investigation into Microsoft, scrutinising its cloud computing, cybersecurity, and AI segments.
Infosys is among the top contributors to the Nifty fall today. The stock is down over 3.5% and has corrected significantly from the highs of the day. TCS is also among the top contributors to the fall on the Nifty and is also among the top losers on the Nifty IT index.
Adani Group stocks, on the other hand, rose by as much as 10% following the group's clarification that its key executives were not charged with violations of the US Foreign Corrupt Practices Act in last week's indictment.
"We believe that the Adani news was a very, very big negative in terms of sentiment, rather than the fundamental, and it has served as a base for the market to bounce back from here. Though, we still believe that we are in a bull market correction, but we believe that there will be a significant retracement from here," said Anirudh Garg of Invasset PMS.
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