Sensex dives 1200 pts; Nifty below 24,100; IT and auto stocks drag

Indian equities faced a sharp sell-off on Thursday, wiping off early gains as weak global cues spurred a significant correction. The Sensex tumbled 1,192 points from its intraday high, closing at 79,255, while the Nifty50 sank 359 points to end at 23,986.

What triggered the slump?

The sharp downturn followed overnight losses in US markets, which saw major indices like the S&P 500 and Nasdaq dip amid a sell-off in tech stocks. Asian markets also offered no relief, with Hong Kong’s Hang Seng index sliding over one per cent. Weakness across global equities coupled with the absence of fresh domestic triggers contributed to the bearish sentiment.

Sectoral carnage led by IT and auto stocks

The IT sector bore the brunt of the sell-off, with the Nifty IT index dropping over two per cent. Heavyweights Infosys, TCS, and Tech Mahindra saw declines of over two per cent each, dragging benchmarks lower. The Nifty Auto and Consumer Durables indices also fell over one per cent each, adding to the broader weakness.

Broader markets provide some respite

While large-cap indices faced pressure, the BSE SmallCap index rose by 1.18 per cent, and the MidCap index gained 0.70 per cent, indicating selective buying interest in mid and small-cap stocks despite the volatile session.

Technical overview

The Nifty50 failed to hold above the 24,000 mark, breaking key support levels. Immediate resistance is seen at 24,360, while further weakness could push the index toward 23,900 in the short term.

Outlook

With no significant domestic cues and global markets under pressure, Indian equities are likely to remain volatile. Investors are advised to tread cautiously and adopt a stock-specific approach as market participants await cues from upcoming macroeconomic data and the monthly derivatives expiry.