Sensex crashes 1,400 points from day's high
What's the story
India's benchmark indices, Sensex and Nifty, witnessed a major fall from their day's high on Wednesday. The decline was mainly due to profit booking at higher levels. At around 2:25pm, the Sensex was down by 581 points or 0.79% at 73,271 while Nifty was trading at 22,668, down by nearly 221 points. Sensex plunged nearly 1,400 points from its intraday peak of 74,682, erasing early gains in a volatile trading session.
Market dynamics
Market witnesses mixed performance
The Nifty Bank index witnessed severe midday selling pressure on Wednesday, tumbling 2%, or roughly 1,100 points, from its intraday peak to breach the 54,800 mark.
While index heavyweights Reliance Industries and TCS rallied nearly 2% to absorb selling pressure, broader risk appetite deteriorated sharply, leaving small- and mid-cap segments down over 1% each.
Market pressures
Rising crude oil prices weigh on market
Adding to the market's woes are rising crude oil prices amid US-Iran tensions.
Brent crude oil futures have been trading above $110 per barrel, which is likely to keep market participants on edge.
V.K. Vijayakumar, chief investment strategist at Geojit Investments said in a note that "with Brent crude prices and US bond yields remaining elevated, the market is likely to remain under pressure."
Market outlook
Nifty needs to cross 23,100 mark for bullish trend
Analysts have suggested that Nifty needs to break past the 23,100 mark for a bullish trend to return in the markets.
This technical resistance is being closely monitored by investors and market participants alike.
The current market conditions show a clear picture of investor sentiment with most stocks trading in red amid profit booking and rising crude oil prices.