Sensex and Nifty slump sharply to multi-month lows on heavy selling pressure

Indian benchmark stock indices suffered a steep fall on Thursday, with the Sensex plunging over 1,000 points and the Nifty dropping to a 21-month low. The BSE Sensex fell 1,045.46 points, or 1.44 percent, to close at 71,593.24, marking its lowest level in more than two and a half years. During the trading session, the index touched an intraday low of 71,327.75 after dropping as much as 1,310.95 points. The NSE Nifty 50 shed 371.25 points, or 1.64 percent, to settle at 22,231.80, which is its lowest closing level in 21 months and a fresh 52-week intraday low of 22,179.90.

Market Factors

Widespread selling hit rate-sensitive stocks, commodities, and fast-moving consumer goods shares. This downward pressure came alongside a sharp increase in crude oil prices, rising bond yields, and growing expectations of tighter monetary policy in India and around the world. Global markets also remained weak, as Asian shares traded lower and US stock futures traded mixed due to rising crude costs and comments from Donald Trump concerning the US-Iran situation.

Expert Views

Ajit Mishra, senior vice president of research at Religare Broking, noted that indices stayed under pressure through most of the session and settled near day lows. Hariselvan Radhakrishnan, founder and CEO of HST Wealth, stated that Indian equities were likely to open higher on Friday with GIFT Nifty near 22,370, pointing to a potential technical rebound after Thursday's sharp sell-off. Sachin Gupta, vice president of technical research at Choice Equity Broking Private Limited, added that the Sensex remains in a sideways structure with the 72,000 to 72,300 support zone crucial for stability.

Context

Stock markets regularly experience sharp corrections when global crude oil prices rise and interest rate expectations tighten, as these factors increase costs for businesses and reduce liquidity. GIFT Nifty figures often provide an early indication of whether domestic indices will open higher or lower based on overnight trading trends.