The Indian stock market suffered strong losses on Tuesday, 23 June, as a fresh wave of selloff engulfed across segments, driving the benchmarks down by more than 1% each.
The Sensex lost 893 points, or 1.16%, to end at 76,200.68, while the Nifty 50 shed 279 points, or 1.16%, to settle at 23,824.10.
The mid and small-cap segments also witnessed selling pressure. While the Nifty Midcap 100 dropped 1.05%, the Nifty Smallcap 100 suffered a relatively smaller loss of 0.48%.
A sharp selloff dragged the overall market capitalisation of BSE-listed firms to ₹475 lakh crore from ₹480.6 lakh crore in the previous session, making investors poorer by nearly ₹6 lakh crore in a single day.
What drove the stock market down today?
The stock market declined amid profit-taking, triggered by concerns about a poor monsoon and weak business data.
India’s services activity fell to a 17-month low, while manufacturing growth slowed to a three-month low in June.
The fell to 57.4 in June from 58.0 in May. The Flash Services Business Activity Index fell to 57.3 in June from the revised reading of 59.8 in May.
Meanwhile, the has started on a weak note, raising concerns about stress on rural incomes and overall demand. As per Mint, over 450 districts have received deficient rainfall so far, raising concerns over farming, water supplies, and the broader economy in an El Niño year.
While geopolitical risks have eased and oil prices have declined significantly, concerns about the global growth outlook persist, keeping investors cautious.
“Profit booking after the recent rally further intensified downside pressure, resulting in broad-based weakness across key sectors. While stable crude prices and easing geopolitical tensions offered some support, investors maintained a cautious stance, focusing on the progress of the monsoon and ongoing US-India trade discussions,” Vinod Nair, Head of Research, Geojit Investments, noted.
“Most sectoral indices ended in red, with metals recording the sharpest decline due to falling global prices and demand concerns amid an uncertain global outlook. The domestic IT sector also remained under pressure, reflecting the global tech rout and persistent concerns over AI-led disruptions in the Indian IT space,” Nair added.
Meanwhile, the rupee declined 11 paise to settle at 94.74 per US dollar.
Top gainers and losers in the Nifty index
As many as 43 stocks ended lower in the Nifty index, among which Infosys, Wipro, and TCS ended as the top laggards.
On the other hand, Cipla, Power Grid, and Dr. Reddy’s Laboratories ended as the top gainers in the index.
Sectoral indices today
Barring Nifty Pharma (up 0.92%) and Healthcare (up 0.54%), all sectoral indices ended lower, with Metal (down 3.22%), IT (down 2.23%), and PSU Bank (down 1.97%) suffering strong losses.
Nifty Bank suffered a loss of 1.30%, while the Financial Services index dropped 0.96%.
Consumer Durables (down 1.50%), Media (down 1.47%), and Realty (down 1.12%) also lost significantly.
Most traded stocks today
Vodafone Idea, Vedanta, Ola Electric Mobility, Tata Silver Exchange Traded Fund, Vedanta Oil and Gas, Meesho, and Vedanta Iron and Steel were the most traded stocks in volume on the NSE.
Nifty 50 technical view
The Nifty 50 is on the verge of breaking below the lower band of its 7-day long congestion range of 23,800-24,200.
Sudeep Shah, the head of technical and derivatives research at SBI Securities, believes the zone of 23,650–23,630 may act as a crucial support for the index, as it coincides with the 50% Fibonacci retracement of the prior up-move.
Shah said a decisive breach below 23,630 could lead to an extension of the corrective phase towards the 23,500 level. On the higher side, the immediate resistance is placed in the 23,930–23,950 zone, which may act as a short-term hurdle for any pullback.
According to Vipin Kumar, AVP- Equity Research and PMS at Globe Capital Market, a decisive close below 23,800 spot levels could drag the index towards 23,600-23500 in the near term. Conversely, sustained above 23,950 spot levels could lead it back to the upper band of the congestion range at 24,200.
Disclaimer: This story is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.