Sensex tanks 550 points, Nifty slips below 25,000 mark
What's the story
The Indian stock market opened on a negative note today, with the BSE Sensex and Nifty50 both witnessing significant declines. The fall was largely led by Bajaj twins (Bajaj Finance and Bajaj Finserv), Reliance Industries Limited (RIL), and Infosys. The BSE Sensex plummeted by 552 points to around 81,632 while the Nifty50 index slipped below the crucial mark of 25,000, specifically at 24,872. In sectoral trends, the Auto and Energy indices led the losses, falling as much as 1.5%.
Market impact
FIIs have pulled out ₹11,500 crore in last 4 days
The current market scenario has been further complicated by foreign institutional investors (FIIs) pulling out over ₹11,500 crore from Indian equities in the last four days. This mass withdrawal has put additional pressure on small-cap stocks, especially those already trading at high valuations. It has also pushed key support levels for the Nifty index into risky territory.
Forecast
Nifty may decline further
Technical indicators are also pointing toward a possible further decline in the Nifty index. Two consecutive bearish candlesticks have raised concerns of more downside ahead. Analysts warn that if the Nifty falls below 24,900, it could face a sharper decline toward levels like 24,650 or even lower. Mixed signals from global markets aren't helping either.