Mid-day market trade: Nifty, Sensex drop sharply amid across the board sell off; broader markets underperform
Indian equities after logging fresh highs in the opening session traded with significant cuts weighed down by across-the-board selling pressure
Indian equities after a strong opening at fresh record highs pared their early losses and traded significantly lower led by selling pressure in metal, auto, realty and energy stocks. In the mid-market trade, the bluechip Nifty index traded lower by 0.81 per cent at 24,601.1, while the BSE Sensex was down 0.61 per cent at 80,845.11. Meanwhile, broader markets logged still deeper losses, with the Nifty Midcap 100 down nearly 2 per cent at the last count.
Nifty Bank, a gauge of the banking sector’s performance, also traded lower by 0.61 per cent, dragged by stocks including SBI, HDFC Bank, Axis Bank and PNB among others.
Sectorally in a volatile session ahead of D-day, all the sectors traded in the red with the metal pack trading with the most cut of around 4 per cent, followed by oil & gas and realty stocks. Earlier in the day, the FMCG and IT indices were trading in the green with the FMCG index clocking a fresh high in intraday trade, nevertheless, they too succumbed to the overall market pressure.
Prashanth Tapse, Senior VP (Research), Mehta Equities advised a cautious approach on Nifty especially as excessive optimism and geopolitical risks pose significant threats to global stock markets. Donald Trump's recent remarks about Taiwan and America's semiconductor business have added to the market's unease.
Meanwhile, the Dow Jones experienced a substantial drop of 533 points due to a tech selloff driven by massive profit booking. Our chart of the day is bullish on Balrampur Chini and Tata Motors, highlighting them as key stocks signaling a significant breakout on the upside, he added.
Infosys shares surged up to 5 per cent in early trade as the company posted better-than-expected Q1, with raised revenue growth guidance for the current FY.
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